The Shady company purchased equipment on January 1, 2020. The cost of the equipment is $70,000, the
Fantastic news! We've Found the answer you've been seeking!
Question:
The Shady company purchased equipment on January 1, 2020. The cost of the equipment is $70,000, the residual value is $6,000, and it has a useful life of 4 years. The company's year end is December 31 | ||||
Complete the depreciation schedule below to calculate the depreciation expense over the useful life of the equipment. | ||||
a) Using straight line depreciation method | ||||
Year | Cost | Depreciation expense | Accumulated Depreciation | Carrying Amount |
b) Using double-diminishing balance method | ||||
Year | Carrying amount brought forward | Depreciation expense | Accumulated Depreciation | Carrying Amount |
Question 3 | ||
Assuming the asset above was sold on December 31, 2022 for $30,000. Prepare the journal entries for the sale using the information from the straight-line balance method at that date. | ||
Dr.$ | Cr.$ | |
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Posted Date: