50.1K

Verified Solution

Link Copied!

Cullumber uses the diminishing-balance method at one times the straight-line depreciation rate. Cullumber Limited purchased delivery equipment on March 1,2019, for $122,500 cash. At that time, the equipment was estimated to have a useful life of frve years and a residual value of $10,800. The equipment was disposed of on November 30,2021 . Cullumber uses the diminishing-balance method at one times the straight-line depreciation rate, has an August 31 year end, and makes adjusting entries annually. (a) Your answer is correct Record the acquisition of equipment on March 1, 2019, iList all debit entries before credit entries. Credit account titles are: dutomotically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Record the disposal of the equipment on November 30, 2021, under each of the following independent assumptions: (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do nof indent manuolly. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5.275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.). 1. It was sold for $60,570. 2. It was sold for $78,510. 3. It was retired for no proceeds. (lo record depreciation on equipment disposed) (1) Now. 30 (2) Nov 30 (3) Nov,30 eTextbook and Media

Answer & Explanation Solved by verified expert

See Answer