On March 31?, 2018?, Modern Landscapes discarded equipment that had a cost of $

Question

On March 31?, 2018?, Modern Landscapes discarded equipment that had a cost of $ 26 comma 600. Accumulated Depreciation as of December ?31, 2017?, was $ 26,000. Assume annual depreciation on the equipment is $ 600. Journalize the? partial-year depreciation expense and disposal of the equipment. ?(Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.)

Journalize the? partial-year depreciation expense.

Date Accounts and Explanation Debit Credit Mar. 31

Calculate any gain or loss on the disposal of the equipment. ?(Enter a? "0" for items with a zero value. Enter a loss with a minus sign or? parentheses.) Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Journalize the disposal of the equipment. Date Accounts and Explanation Debit Credit Mar. 31

Explanation / Answer

Journal entry :

Date account & explanation debit credit Mar 31 Depreciation expense (600*3/12) 150 Accumlated depreciation 150 (To record partial depreciation) Mar 31 Accumlated depreciation (26000+150) 26150 Loss on discard of equipment 450 Equipment 26600 (To record disposal of equipment)

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