Wildhorse uses the diminishing-balance method at one times the straight-line depreciation rate. Wildhorse Limited purchased delivery equipment...

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Accounting

Wildhorse uses the diminishing-balance method at one times thestraight-line depreciation rate. Wildhorse Limited purchaseddelivery equipment on March 1, 2019, for $131,250 cash. At thattime, the equipment was estimated to have a useful life of fiveyears and a residual value of $10,080. The equipment was disposedof on November 30, 2021. Wildhorse uses the diminishing-balancemethod at one times the straight-line depreciation rate, has anAugust 31 year end, and makes adjusting entries annually.
Record the disposal of the equipment on November 30, 2021, undereach of the following independent assumptions: (List all debitentries before credit entries. Credit account titles areautomatically indented when the amount is entered. Do not indentmanually. Record journal entries in the order presented in theproblem. Round answers to 0 decimal places, e.g. 5,275. If no entryis required, select "No Entry" for the account titles and enter 0for the amounts.) 1. It was sold for $61,370. 2. It was sold for$86,740. 3. It was retired for no proceeds.

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3.9 Ratings (657 Votes)

Depreciation rate 1 5 Years1 020 or 20 Depreciation for 6 months in 2019March 12019 to August 312019 13125020 26250612 13125 Depreciation for 12 monthsSept 12019 to August 312020 See Answer

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