Homework Help is Here – Start Your Trial Now!
Business
Accounting
Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June 2018. Indicate the date to each entry. Narratives are not required.

Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June 2018. Indicate the date to each entry. Narratives are not required.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

please help me

Part B On 1 July 2016, Winsor Corp. purchased an equipment for $120,000. This equipment is depreciated using a straight-line method. The useful life is 6 years and residual value is expected to be zero. The equipment is revalued on 31 December 2017 and the fair value is $108,000. The company's policy is to use gross elimination method for any accumulated depreciation at the date of revaluation and only transfer the revaluation reserve, if any, to retained earnings when the equipment is de- recognized. The equipment is sold for $80,000 on 30 June 2018. Required: Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June 2018. Indicate the date to each entry. Narratives are not required.
Transcribed Image Text:Part B On 1 July 2016, Winsor Corp. purchased an equipment for $120,000. This equipment is depreciated using a straight-line method. The useful life is 6 years and residual value is expected to be zero. The equipment is revalued on 31 December 2017 and the fair value is $108,000. The company's policy is to use gross elimination method for any accumulated depreciation at the date of revaluation and only transfer the revaluation reserve, if any, to retained earnings when the equipment is de- recognized. The equipment is sold for $80,000 on 30 June 2018. Required: Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June 2018. Indicate the date to each entry. Narratives are not required.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS