Question

Arial A3 10 - АА Care Paste B A Format • XSA company purchases an asset on January 1, 2017 which costs 90,000. The company signs a note to pay for the asset. It has a 4 year ife and $10,000 savage value c 3 1 Problem 3 There are 4 dies which need so is het Acompany purchases an asset on January 1, 2017 which conta 10,000. The company is a note to pay for the set It has a year lo and $10.000 salvage at the company straight in den The old on June 30, 2019 for $31,000 8 Prepare enties on the flowing daties, garding the You will need 2 entries her 30 T 30 40 41 43 Problems Problem 4 + Edit

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) Date 1/1/17 Particulars Credit Debit 90000 Asset Note Payable (To record purchase of asset) 90000 Credit Debit 20000 Date Particulars 12/31/17. Depreciation ((90000-10000)/4) Accumulated Depreciation (To record depreciation) 20000 Date Particulars 12/31/18. Depreciation ((90000-10000)/4) Accumulated Depreciation (To record depreciation) Debit Credit 20000 20000 Debit Credit 10000 Date Particulars 06/30/19. Depreciation ((90000-10000)/4*1/2) Accumulated Depreciation (To record depreciation) 10000 Date Particulars 06/30/19. Accumulated Depreciation Loss on sale of assets (40000-31000) Cash Debit Credit 50000 9000 31000 90000 Asset To record sale of asset)