Question

E 10-23 (similar to) HW 507 5 10ps de 157700 Begin by the depreciw

On January, 2, 2016, King Pet purchased fixtures for $57,000 cash, expecting the fixtures to remain in service for nine years. King Pet has depreciated the fixtures on a straight-line basis, with $1000 residual value. On April 30, 2018, King Pet sold the fixtures for $37000 cash. Record both depreciation expense for 2018 and sale of the fixtures on April 30, 2018.

Please help!!!! Theres a total of 3 journal entries. I am so confused. Thank you!!!!!!

Answer 1

F H ДА 4 Ans: 5 Prepare journal entire: Date Accounts title and explanation 7 30.04.18 Depreciation expenses Accumulated depreciation (To record depreciation on fixtures) Credit Credit Debit $2,074 Prepare journal entire: | Date Accounts title and explanation 30.04.18 Profit and Loss account Depreciation account Debit $2.074 $2.074 $2,074 Amount $57.000 $1,000 $56,000 Particulars Cost of assets 13 Less: Residual value Depreciable cost 15 Divide: Use full life Annual depreciation Annual depreciation 2 years Depreciation for 2018 for 4 months = Prepare journal entire: Date Accounts title and explanation | Debit Credit 30.04.18 Cash $37.000 Accumulated depreciation $14,518 Loss on sale of fixtures $5,482 Fixture $57,000 (Recorded loss on sale of Fixture.) $6,222 $12.444.44 $6,222*(4 month/12 month) $2,074 $14,518 Accumulated depreciation = Cost of the fixtures Market value Accumulated depreciation $57,000 $37.000 $14,518 Computation of Gain or Loss on Sale of Fixtures Detail Amount ($) Amount (3) Market value received $37,000 Less: Book value of the Fixtures sold Cost of the equipment $57.000 Less: Accumulated depreciation $14,518 $42.482 Gain or (Loss) on Sale -$5,482

ні А 4 Ans: 5 Prepare journal entire: Date Accounts title and explanation 7 30.04.18 Depreciation expenses Accumulated depreciation (To record depreciation on fixtures) Credit Credit Debit =C19 Prepare jo Date Accounts title and explanation 30.04.18 Profit and Loss account Depreciation account Debit =C7 Less: Prepare jo Date Accounts title and explanation 30.04.18 Cash Accumulated depreciation Loss on sale of fixtures Fixture (Recorded loss on sale of Fixture.) Debit Credit 37000 =C20 5482 =SUM(H12:H14) Particulars Amount Cost of assets 57000 Residual value 1000 Depreciable cost =C12-C13 Use full life Annual depreciation =C14/C15 Annual depreciation 2 years =C16*2 Depreciation for 2018 for 4 months = $6,222*(4 month/12 month) = =6222*(4/12) Accumulated depreciation = =C17+C19 15 Divide: Cost of the fixtures Market value Accumulated depreciation 57000 37000 =C20 Computation of Gain or Loss on Sale of Fixtures Detail Amount (3) Amount (S) Market value received =C23 Less: Book value of the Fixtures sold Cost of the equipment =C22 Less: Accumulated depreciation =C24 =C30-C31 | Gain or (Loss) on Sale =D28-D31