Laurin Limited purchased equipment on October 8, 2017, at a cost of $347,200. Laurin's management estimated...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Laurin Limited purchased equipment on October 8, 2017, at a cost of $347,200. Laurin's management estimated that the equipment would have a useful life of four years and a residual value of $39,200. At the beginning of 2020, Laurin's management determined that the equipment would be used for three more years (including all of 2020), and at the end of this time the equipment's residual value would be $39,850. The company ended up selling the equipment on August 28, 2021, for $102,150. Laurin uses the straight-line method of depreciation and has a December 31 year end. Give the necessary journal entries for the acquisition, depreciation, and disposal of this asset for the years 2017, 2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense) (To record sale of equipment) 111 Aug 28, 2021 Laurin Limited purchased equipment on October 8, 2017, at a cost of $347,200. Laurin's management estimated that the equipment would have a useful life of four years and a residual value of $39,200. At the beginning of 2020, Laurin's management determined that the equipment would be used for three more years (including all of 2020), and at the end of this time the equipment's residual value would be $39,850. The company ended up selling the equipment on August 28, 2021, for $102,150. Laurin uses the straight-line method of depreciation and has a December 31 year end. Give the necessary journal entries for the acquisition, depreciation, and disposal of this asset for the years 2017, 2020, and 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit (To record depreciation expense) (To record sale of equipment) 111 Aug 28, 2021
Expert Answer:
Answer rating: 100% (QA)
Date Account Titles and Explanations Debit Credit Oct 8 2017 Equipment 347200 Cash 347200 To record ... View the full answer
Related Book For
Understanding Financial Accounting
ISBN: 9781119406921
2nd Canadian Edition
Authors: Christopher D. Burnley
Posted Date:
Students also viewed these accounting questions
-
Journalize the following transactions for Tanaka Company for June 2016 the companys first month of operations Credit account titles are automatically indented when the amount is entered Do not indent...
-
On December 31, 2020, Green Bank enters into a debt restructuring agreement with Shamrock Inc., which is now experiencing financial trouble. The bank agrees to restructure a $2.3-million, 10% note...
-
At the end of 2020, Accustart Corp. has accounts receivable of $472,300 and an allowance for doubtful accounts of $26,400. On January 24, 2021, Accustart learns that its $10,800 receivable from...
-
A Bernoulli random variable has variance 0.21 . What are the possible values for its success probability?
-
IFRS and U.S. GAAP follow similar approaches for accounting for taxation. Nevertheless, differences in reported amounts for deferred taxes are among the most frequent between IFRS and U.S. GAAP . Why?
-
Suppose that the failure time of a component is modeled with an exponential distribution with a mean of 32 days. A company acquires a batch of 240 components. If the failure times of these components...
-
Sony ('orp). launched its PlayStation 4 in late 2013. It was introduced at a price point of \(\$ 399\). At the time of introduction, a technology firm performed a tear-down of the PlayStation and...
-
Suppose you are advising a college basketball coach on whether to organize his summer basketball camps for high school students as a C corporation versus an S corporation. The taxpayer plans to...
-
You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the...
-
Mega Games, Inc., produces two games, Extreme Combat and Judgment Weekend, with product structures as shown. An order for 100 units of Extreme Combat and 175 units of Judgment Weekend has been...
-
Easy-going company acquired some Plant at a cost of $1.5million. As at 30 June 2014 the plant had accumulateddepreciationof $250 000.On 30 June 2014 it was determined that the plant could be sold for...
-
Samuel has a longstanding interest in cryptocurrency. Can the company raise funds via bitcoins?
-
Find the derivative of dx dt 8 3 8+4
-
Find the interval of x whereby f(x)0 given that f(x)=- x-4x (x-1)2(x+2) In the following table, identify all the intervals and put in (a) to (e). Then from (f) to (i), write the sign (+ or -) for...
-
There are two stocks: Totally Fake Stock (TFS) and Imaginary Industries Inc. (III). Both stocks are trading at $100 / share. Alicia and Bashir each have $10,000 in their respective margin accounts....
-
We have three parties: - MF (Megafilms): a company that wants to create 3 movies - PV (Panorama Ventures): a company that is willing to invest in these movies - SV (Spec Ventures): a company willing...
-
8. Scenario analysis Kiosk Corp. produces vending machines and places them in public buildings. The company has obtained permission to place one of its machine in a local library. The company makes...
-
Global.asax is used for: a. declare application variables O b. all other answers are wrong O c. declare global variables O d. handle application events
-
Big Rock Brewery Inc. is a regional producer of craft beers and ciders that are sold across Canada. Exhibit 9.12 contains Note 3.11 detailing Big Rocks policy regarding keg deposits from the 2016...
-
Cineplex Inc. is currently Canadas largest film exhibition organization, with theatres in six provinces. Excerpts from its 2016 financial statements are in Exhibits 2.24A to 2.24E. EXHIBIT 2.24A...
-
The 2020 financial statements of Green Company include the following statement of cash flows: Required a. Did Green Company increase or decrease its current assets, other than cash, during 2020? Is...
-
Lathrop Co. makes a variety of products from a joint process. The joint cost per batch run is \(\$ 55,000\) and each batch produces the following products: How would you classify each product (joint,...
-
Oliver Inc. makes three types of olive oil that can be sold at split-off or processed further and then sold. The joint cost for October is \(\$ 325,000\). The number of ounces in a bottle of each...
-
Potato skins are generated as a by-product in making potato chips and frozen hash browns at Fit Food. The skins are sold to restaurants for use in appetizers. Processing and disposal costs associated...
Study smarter with the SolutionInn App