On August 31, 2018, Perfest Landscapes decarded equipment hat had a oost of $23,
ID: 2604035 • Letter: O
Question
On August 31, 2018, Perfest Landscapes decarded equipment hat had a oost of $23,800. Acumulated Dep eoiation as of December 31, 2015, was $23,000. Assume annual depreciation on the equipment is 3800. Joumaz the parta year depreciation experse and dispa o the equipment. (Record debits first, then edita. Seloot the xplanation on the last ine ot the journal ancry tabla.) Joumalze the parta year depreciation expes Date Debit Credit Aug. 31 Calculate any gan or loss on the disposal of the cqupment Ener 2 Market vale of assets received Less Book value of assel disposed of -for tems ta zaro value. Encer a loos with minus sign or parentheses.) Joumalize the dsposal of the equipment. Date Accounts and Explanation Debit Credit Aug. 31 Cash Sold equipment for ceshExplanation / Answer
Journal entry for partial year depreciation expense:
Date
Account title
Debit
Credit
31-Aug-16
Depreciation expense- Equipment
400
Accumulated depreciation- Equipment
400
{partial depreciation = (Annual depreciation * 8/12) = $600*8/12]
Calculation of gain or loss on disposal of the equipment:
Market value of the asset received
$0
Less: Book value of asset disposed of
Cost
23,600
Less: Accumulated depreciation ($23,000+400)
(23,400)
200
Gain or (loss)
(200)
Journal entry for disposal of the equipment:
Date
Account title
Debit
Credit
31-Aug-16
Accumulated depreciation- Equipment
23,400
Loss on Disposal
200
Equipment
23,600
Date
Account title
Debit
Credit
31-Aug-16
Depreciation expense- Equipment
400
Accumulated depreciation- Equipment
400
{partial depreciation = (Annual depreciation * 8/12) = $600*8/12]
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