The following information was taken from the books of S.Dooley for the year ended 31/12/20X1: 01...

Transcribed Image Text:

The following information was taken from the books of S.Dooley for the year ended 31/12/20X1: 01 Jan: Equipment at cost amounted to €150,000 01 Jan: The balance on the provision for depreciation of equipment a/c is €70,000 10 Apr: Purchased Equipment for €60,000 16 Jun: Sold for €15,500 equipment that had cost €35,000 6 years ago 28 Sept: Sold for €5,000 equipment that had cost €12,000 5 years ago 31 Dec: Depreciation for the year is charged S. Dooley uses straight line method to depreciate equipment over 10 years Required: Show the entries in the equipment account and the provision for depreciation of equipment account for the year 20X1 Show the profit or loss made on the disposals of equipment during the year 20X1 The following information was taken from the books of S.Dooley for the year ended 31/12/20X1: 01 Jan: Equipment at cost amounted to €150,000 01 Jan: The balance on the provision for depreciation of equipment a/c is €70,000 10 Apr: Purchased Equipment for €60,000 16 Jun: Sold for €15,500 equipment that had cost €35,000 6 years ago 28 Sept: Sold for €5,000 equipment that had cost €12,000 5 years ago 31 Dec: Depreciation for the year is charged S. Dooley uses straight line method to depreciate equipment over 10 years Required: Show the entries in the equipment account and the provision for depreciation of equipment account for the year 20X1 Show the profit or loss made on the disposals of equipment during the year 20X1

Answer rating: 100% (QA)

To show the entries in the Equipment account and the Provision for Depreciation of Equipment account for the year 20X1 and to calculate the profit or ... View the full answer