Use the following information and deter mine the carrying amount of the property, plant, and equipment of Havelock Ltd. on July 1, 2017, the first day of its 2018 fiscal year. (An accounting equation spreadsheet, journal entries, or T-accounts may help you answer this question. Hint: You are calculating the account balance at the beginning of the year.)
i. On June 30, 2018, the cost of Havelock's property, plant, and equipment was
$1,125,000 and the accumulated depreciation was $512,500.
ii. During fiscal 2018, Havelock purchased property, plant, and equipment for $237,500 in cash plus $100,000 in notes payable.
iii. During fiscal 2018, Havelock sold property, plant, and equipment with a cost of $135,000 at a gain of $30,000. Havelock received $50,000 cash for the assets.
iv. During fiscal 2018, Havelock sold land, which is included in property, plant, and equipment, for $107,500 cash. The sale produced a loss for accounting purposes of $40,000.
v. During fiscal 2018, Havelock wrote down property, plant, and equipment by $41,500.
vi. Havelock recorded a depreciation expense of $115,000.

  • CreatedFebruary 26, 2015
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