Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. (a) faster company purchased equipment in 2010 for

(a) Faster Company purchased equipment in 2010 for $104,000 and estimated an $8,000 salvage value...

70.2K

Verified Solution

Question

Accounting

(a) Faster Company purchased equipment in 2010 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2016, there was

$67,200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $21,000.

Prepare the appropriate journal entries to remove the equipment from the books of Faster Company on March 31, 2017.

(b) Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul in 2017 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.

Prepare the appropriate journal entry to record the disposition of the equipment.

(c) Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment.

Prepare the appropriate journal entry to record the disposition of the equipment.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Set up the system of equations that are needed to be solved using Lagrange multipliers in...

Economics
1.2K views

economic history Discuss the westward expansion and the impact on Native Americans. How has this expansion impacted...

Finance
1.2K views

home / study / business / finance / finance questions and answers / your firm is...

Biology
1.2K views

This event also marks the boundary between the O Paleozoic and Mesozoic Mesozoic and Cenozoic...

Physics
1.2K views

Two glass hem heres of refractive index and radius R are placed with their plane...

Basic Math
1.2K views

Identify the sample space OA The sample space is 00 B The sample space is...

Accounting
1.2K views

North Company designs and manufactures machines that facilitate DNA sequencing. Depending on the intended purpose...

Accounting
1.2K views

Shelby Corporation was organized in January to operate an air-conditioning sales and service business. The...

Accounting
1.2K views

Question 6 2 pts Kamper Company sells two products Big Z and Little Z. Current...

Accounting
1.2K views

The accounting equation is the Alpha of Accounting rules. As the junior accountant at the...

Accounting
1.2K views

Problem one: SSJ, Inc. received the following reports from the company's actuary and pension plan...

Accounting
1.2K views

just want to make sure I got it right Mauro Products sells a...