Part A: London Corp.Company purchased equipment in 2021 for $100,000 and e $10,000 residual value at the end of the equipment's 10-year useful life. At De 2027, there was $63,000 in the Accumulated Depreciation account for this using the straight-line method of depreciation. On March 31, 2028, the equ sold for $28,500. Required Part A: a) Prepare the appropriate journal entries to update depreciation and ther the equipment from the books of Lui Company on March 31, 2028.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Part A:
London Corp.Company purchased equipment in 2021 for $100,000 and estimated an
$10,000 residual value at the end of the equipment's 10-year useful life. At December 31,
2027, there was $63,000 in the Accumulated Depreciation account for this equipment
using the straight-line method of depreciation. On March 31, 2028, the equipment was
sold for $28,500.
Required Part A:
a)
Prepare the appropriate journal entries to update depreciation and then to remove
the equipment from the books of Lui Company on March 31, 2028.
Part B:
Gagne Company sold a delivery truck for $14,000. The delivery truck originally cost
$26,000 in 2021 and $4,000 was spent on a major overhaul in 2027 (charged to Delivery
Truck account). Accumulated Depreciation on the delivery truck to the date of disposal
was $16,000.
Required Part B:
Prepare the appropriate journal entry to record the disposition of the delivery truck.
Part C:
Campbellford Wholesalers sold office equipment that had a net book value of $6,700 for
$7,000. The office equipment originally cost $15,000 and it is estimated that it would cost
$19,000 to replace the office equipment.
Required Part C:
Prepare the appropriate journal entry to record the disposition of the office equipment.
of 7
1471 words
E Focus
Due Date
Apr 24, 2022 11:59 PM
Submit
Ca
APR
68
22
étv N A
Transcribed Image Text:Font Paragraph Styles Dictate Sensitivity Editor 10 11 14 15 16 17 Part A: London Corp.Company purchased equipment in 2021 for $100,000 and estimated an $10,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2027, there was $63,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2028, the equipment was sold for $28,500. Required Part A: a) Prepare the appropriate journal entries to update depreciation and then to remove the equipment from the books of Lui Company on March 31, 2028. Part B: Gagne Company sold a delivery truck for $14,000. The delivery truck originally cost $26,000 in 2021 and $4,000 was spent on a major overhaul in 2027 (charged to Delivery Truck account). Accumulated Depreciation on the delivery truck to the date of disposal was $16,000. Required Part B: Prepare the appropriate journal entry to record the disposition of the delivery truck. Part C: Campbellford Wholesalers sold office equipment that had a net book value of $6,700 for $7,000. The office equipment originally cost $15,000 and it is estimated that it would cost $19,000 to replace the office equipment. Required Part C: Prepare the appropriate journal entry to record the disposition of the office equipment. of 7 1471 words E Focus Due Date Apr 24, 2022 11:59 PM Submit Ca APR 68 22 étv N A
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