Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully set-up and operational on that date. The equipment was purchased for $160,000. In addition to the purchase price, Braodway spent $20,000 to transport the equipment on site and $30,000 of engineering fees to set-up the equipment. It had an estimated useful life of 10 years and an estimated residual value of $30,000. Each year $3,000 is spent on repairs and maintenance. On 1 July 2024, the equipment was sold for $82,500 cash. Broadway’s financial year end balance date is 30 June (ignore GST). Record the general journal entry required for the disposal of the equipment on 1 July 2024 if Broadway uses the diminishing-balance depreciation method at a rate of 30%.
Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully set-up and operational on that date. The equipment was purchased for $160,000. In addition to the purchase price, Braodway spent $20,000 to transport the equipment on site and $30,000 of engineering fees to set-up the equipment. It had an estimated useful life of 10 years and an estimated residual value of $30,000. Each year $3,000 is spent on repairs and maintenance. On 1 July 2024, the equipment was sold for $82,500 cash. Broadway’s financial year end balance date is 30 June (ignore GST). Record the general journal entry required for the disposal of the equipment on 1 July 2024 if Broadway uses the diminishing-balance depreciation method at a rate of 30%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully set-up and operational on that date. The equipment was purchased for $160,000. In addition to the purchase price, Braodway spent $20,000 to transport the equipment on site and $30,000 of engineering fees to set-up the equipment. It had an estimated useful life of 10 years and an estimated residual value of $30,000. Each year $3,000 is spent on repairs and maintenance. On 1 July 2024, the equipment was sold for $82,500 cash. Broadway’s financial year end balance date is 30 June (ignore GST).
Record the general
Transcribed Image Text:Fill in your answer in the boxes provided. Not all boxes need to be completed. For general
journal entries, narrations are NOT required and ignore GST. Make sure each Debit (Dr) and
Credit (Cr) entry is typed in on a separate line within the Inspera text answer box.
Account Debited
Account Credited
Debit $
Credit $
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