On March 31 , 2018 , Modern Landscapes discarded equipment that had a cost of $ 16 comma 500. Accumulated Depreciation as of December 31, 2017 , was $ 15 comma 000. Assume annual depreciation on the equipment is $ 1 comma 500. Journalize the partial-year depreciation expense and disposal of the equipment.

1. Depreciation - equipment A/c Dr $375

To Equipment A/c $375

(Being the depreciation expense is recorded)

2. Accumulated depreciation - Equipment A/c Dr $15,375

Loss on disposal of equipment A/c $1,125

To Equipment A/c $16,500

Explanation:

The journal entries are shown below:

1. Depreciation - equipment A/c Dr $375

To Equipment A/c $375

(Being the depreciation expense is recorded)

The computation is shown below:

= $1,500 * 3 months : 12 months

= $375

2. Accumulated depreciation - Equipment A/c Dr $15,375 ($15,000 + $375)

Loss on disposal of equipment A/c $1,125

To Equipment A/c $16,500

(Being the disposal of equipment is recorded)