Question

EveryWhere Development Co. showed the following selected PPE balances on January 31, 2014:
Van............................................................................................ $64,400
Accumulated depreciation, van1................................................ 40,600
Machinery.................................................................................. 128,800
Accumulated depreciation, machinery2 .................................... 20,440
Equipment................................................................................... 75,600
Accumulated depreciation, equipment3.................................... 44,800

1 Remaining estimated useful life is 40,000 kilometers with a residual value of $9,800; depreciated using the units-of-production method.
2 Total estimated useful lives is 10 years with a residual value of $16,800; depreciated using the double-declining-balance method to the nearest whole month.
3 Remaining estimated useful life is three years with a residual value of $5,600; depreciated using the straight-line method to the nearest whole month.
Required Prepare the entries to record the following disposals:
1. The van was sold on March 2, 2014, for cash of $17,920. It had been driven 4,500 kilometers from January 31, 2014, to the date of sale.
2. The machinery was sold on August 27, 2014, for cash of $95,718.
3. The equipment was sold on June 29, 2014, for cash of $27,720.



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  • CreatedJanuary 08, 2015
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