Tamarisk Corporation donates equipment and a truck to the community Home Assistance Centre. The equipment had a cost of $110,000, accumulated depreciation to the contribution date of $51,000, and a fair value of $61,000. The truck had a cost of $50,000, accumulated depreciation to the contribution date of $30,000, and a fair value of $33,000. Prepare the journal entry Tamarisk Corporation would make for the donation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Tamarisk Corporation donates equipment and a truck to the community Home Assistance Centre. The equipment had a cost of $110,000, accumulated depreciation to the contribution date of $51,000, and a fair value of $61,000. The truck had a cost of $50,000, accumulated depreciation to the contribution date of $30,000, and a fair value of $33,000. Prepare the journal entry Tamarisk Corporation would make for the donation. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
Transcribed Image Text:Tamarisk Corporation donates equipment and a truck to the community Home Assistance Centre. The equipment had a cost of
$110,000, accumulated depreciation to the contribution date of $51,000, and a fair value of $61,000. The truck had a cost of $50,000,
accumulated depreciation to the contribution date of $30,000, and a fair value of $33,000.
Prepare the journal entry Tamarisk Corporation would make for the donation. (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all
debit entries before credit entries.)
Account Titles and Explanation
Accumulated Depreciation - Equipment
Debit
51000
Credit
Equipment
Contribution Expense
10000
Accumulated Depreciation - Automobiles
30000
Equipment
Contribution Expense
20000
61000
50000
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