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ID: 2397267 • Letter: D
Question
dexter cas dexter cas dexter cas have a usefud e of five years and a residual value r s Carla Vista Limited purchased delivery equipment on March 1, 2016, for $138,750 cash. At that time, the equipment was estimated to November 30, 2018. Carla Vista uses the diminishing-balance methed at one times the straight-ine depreciation rabe, has an August 3t year end, and makes austing enthes arnuaty (Credit account titles are automatically Indented when the amount entered not Andet manuir u ee ety reourd felet tNa tery-for the teauet Reord the acquiston of?ipment on March 1·2016 tities and enter fer the amounts) Date Account Titles and Explanation indent manually. It no entry is required, select "Ne Enbry" for the Record degreciation at August 31, 2016, 2017, and 2018 (Credit account eitles ave automatically indented when the amount is entered. De nod the amounts answers to 0 decimal places, e.g. 5,27s.) A 31, 2016 Aug- 31, 201 An), 2018Explanation / Answer
Date Account Description Debit Credit 1-Mar-16 Equipment $ 138,750.00 Cash $ 138,750.00 (To record purchase of Equipment) Cost of Equipment $ 138,750.00 Depreciation Rate(1/5) 20% Depreciation - 31 Aug,2016 (138,750*20%*6/12) $ 13,875.00 Written Down Value- 31 Aug, 2016 $ 124,875.00 Depreciation - 31 Aug,2017 (124,875*20%) $ 24,975.00 Written Down Value- 31 Aug, 2017 $ 99,900.00 Depreciation - 31 Aug,2017 (99900*20%) $ 19,980.00 Written Down Value- 31 Aug, 2018 $ 79,920.00 Depreciation - 30 Nov,2018 (79920*20%*3/12) $ 3,996.00 Written Down Value- 30 Nov, 2018 $ 75,924.00 Accumulated Depreciation-30 Nov,2018 $ 62,826.00 Date Account Description Debit Credit 31-Aug-16 Depreciation $ 13,875.00 Accumulated depreciation $ 13,875.00 (To record Depreciation) 31-Aug-17 Depreciation $ 24,975.00 Accumulated depreciation $ 24,975.00 (To record Depreciation) 31-Aug-18 Depreciation $ 19,980.00 Accumulated depreciation $ 19,980.00 (To record Depreciation) Date Account Description Debit Credit 30-Nov-18 Depreciation $ 3,996.00 Accumulated depreciation $ 3,996.00 (To record Depreciation) 30-Nov-18 Cash $ 60,840.00 Accumulated Depreciation $ 62,826.00 Loss on Disposal $ 15,084.00 Equipment $ 138,750.00 (To record disposal of assets) 30-Nov-18 Cash $ 79,200.00 Accumulated Depreciation $ 62,826.00 Gain on Disposal $ 3,276.00 Equipment $ 138,750.00 (To record disposal of assets) 30-Nov-18 Accumulated Depreciation $ 62,826.00 Loss on Disposal $ 75,924.00 Equipment $ 138,750.00 (To record disposal of assets) Date Account Description Debit Credit 30-Nov-18 Depreciation $ 3,996.00 Accumulated depreciation $ 3,996.00 (To record Depreciation) 30-Nov-18 Cash $ 60,840.00 Accumulated Depreciation $ 62,826.00 Loss on Disposal $ 15,084.00 Equipment $ 138,750.00 (To record disposal of assets) 30-Nov-18 Cash $ 79,200.00 Accumulated Depreciation $ 62,826.00 Gain on Disposal $ 3,276.00 Equipment $ 138,750.00 (To record disposal of assets) 30-Nov-18 Accumulated Depreciation $ 62,826.00 Loss on Disposal $ 75,924.00 Equipment $ 138,750.00 (To record disposal of assets)
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