Question

in January 2, 2017 Shug Clothing Consignments purchased showroom Textures for 10 poucash, expecting the futures tu ervice for five years. Snug has depreciated the futures on a double declining balance basis with zero residual value. On September 30, 2018. Snug sold the fixtures for 55.000 cash. Record both depreciation expense for 2018 and sale of the fixtures on September 30, 2018. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Note that 2017 depreciation was recorded and posted in 2017) Begin by recording the depreciation expense for January 1, 2018 through September 30, 2018 Credit Debit Accounts and Explanation Date Sep. 30 Choose from any list or enter any number in the input fields and then click Check Answer. Clear All

Answer 1

Double Declining Balance Method = 2/ useful life x book value Year Book Value 2017 | $10,000 Till Sep 2018 $6,000 Accumulated Closing Book Depreciation Depreciation Value $4,000 [2/5 x $10000] $4,000 $6,000 $1,800 [(2/5 x $6000)/12 x9] $5,800 $4,200 $5,800 Credit Date Sep 30 Debit $1,800 $1,800 Sep 30 Account Title Depreciation Expense Accumulated Depreciation - Fixtures (To record depreciatin till Sep 2018) Cash Accumulated Depreciation - Fixtures Gain on sale of fixed assets Fixtures (To record gain on sale of fixed assets $5,000 $5,800 $800 $10,000