On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $35,000 on...

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On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $35,000 on January 1, 2011. The equipment had a residual value of $5.000, a useful life 10 years, and double-declining- balance depreciation at twice the straight-line rate was used. On December 31, 2014, accumulated depreciation was $20,664. The asset was sold for $14,200. Prepare the journal entry to record depreciation up to the date of disposal of the equipment, and the journal entry to record the disposal of the equipment. Show your calculation for marks On April 1, 2015, Thunderbird Co sold a piece of equipment that had cost $35,000 on January 1, 2011. The equipment had a residual value of $5.000, a useful life 10 years, and double-declining- balance depreciation at twice the straight-line rate was used. On December 31, 2014, accumulated depreciation was $20,664. The asset was sold for $14,200. Prepare the journal entry to record depreciation up to the date of disposal of the equipment, and the journal entry to record the disposal of the equipment. Show your calculation for marks

Answer rating: 100% (QA)

Journal entries Date accounts and explanation Debit Credit Apr 1 2015 Depreciation 717 Accumulated d... View the full answer