On May 31 , 2018 , Option Landscapes discarded equipment that had a cost of $ 29 comma 100. Accumulated Depreciation as of December 31, 2017 , was $ 27 comma 000. Assume annual depreciation on the equipment is $ 2 comma 100. Journalize the partial-year depreciation expense and disposal of the equipment.

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Business

Alonso Elliott

2 May, 11:26

On May 31 , 2018 , Option Landscapes discarded equipment that had a cost of $ 29 comma 100. Accumulated Depreciation as of December 31, 2017 , was $ 27 comma 000. Assume annual depreciation on the equipment is $ 2 comma 100. Journalize the partial-year depreciation expense and disposal of the equipment.

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Lucian Barr · Answer 1

depreciation expense 525

accumulated depreciation equipment 525

to record depreciation from jan 1st to March 31th

loss on dispossal 1,575

acc depreciation equipment 27,525

equipment 29,100

to record loss on dispossal of equipment

Explanation:

January 1st to march 31th = 3 months

months per year = 12

annual depreciation x 3/12 = partial depreciation

2,100 x 3/12 = 525

equipment 29,100

acc depreciation

27,000 + 525 = (27,525)

book value 1,575

salvage 0

loss (1,575)