P9-7A Express Co. purchased equipment on March 1, 2012, for $95,000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2015. Express Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end. Instructions (a) Record the acquisition of the equipment on March 1, 2012. (b) Record depreciation at August 31, 2012, 2013, and 2014. (c) Record the disposal on February 1, 2015, under the following assumptions: 1. It was scrapped with no residual value.

P9-7A Express Co. purchased equipment on March 1, 2012, for $95,000 on account. The equipment had an estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of on February 1, 2015. Express Co. uses the diminishing-balance method of depreciation with a 20% rate and calculates depreciation for partial periods to the nearest month. The company has an August 31 year end. Instructions (a) Record the acquisition of the equipment on March 1, 2012. (b) Record depreciation at August 31, 2012, 2013, and 2014. (c) Record the disposal on February 1, 2015, under the following assumptions: 1. It was scrapped with no residual value.

Name: P9-7A Express Co. purchased equipment on March 1, 2012, for $95,000 o
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Description: P9-7A Express Co. purchased equipment on March 1, 2012, for $95,000 on account. The equipment hadan estimated useful life of five years, with a residual value of $5,000. The equipment is disposed of onFebruary 1, 2015. Express Co. uses the diminishi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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