Prepare journal entries to record disposal of equipment

Assignment Help Financial Accounting

Reference no: EM13863639

Canton Industries acquired equipment at a cost of $126,000 and a book value of $42,000. Prepare the journal entries to record the disposal of the equipment under the following independent assumptions.

(a) The equipment had no market value and was discarded.

(b) The equipment is sold for $53,000.

(d) The equipment is traded-in for a similar asset. The list price of the new equipment is $63,000.

Reference no: EM13863639

Questions Cloud

Make an adjusting entry involving cash account : What are adjusting entries and why are those necessary? When do you prepare adjusting entries? Will you ever make an adjusting entry involving Cash account?

Double-declining-balance method of depreciation : Garbo Company acquired equipment on January 1, 2013 for $70,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimated that the equipment will produce 100,000 units over its 5-y..

Cost control strategy be company-wide : What can the purchasing manager of an organization do to control costs of raw materials? And the production manager? Or should this cost control strategy be company-wide? What are some management tools that we can use to encourage everyone to think l..

Prepare the journal entry to amortize patent at year end : Tandem Industries purchased a patent on January 1, 2014, for $2,000,000. The patent's legal life is 20 years but the company estimates that the patent's useful life will only be 5 years from the date of acquisition. On June 30, 2014, the company paid..

Prepare journal entries to record disposal of equipment : Canton Industries acquired equipment at a cost of $126,000 and a book value of $42,000. Prepare the journal entries to record the disposal of the equipment under the following independent assumptions.

Contractors for fencing-paving-lighting and landscaping : Conan Corporation purchased land and contracted with a developer to construct an office building. Conan Corporation also engaged other contractors for fencing, paving, lighting, and landscaping.

What would be total variable costs for this new level : An Internet gourmet foods company, “Yumminess”, will be including “Chocolate Attack Brownies” (CAB) in their online catalog. What would be total variable costs for this new level? What would be total fixed costs for this new level?

Describe characteristic of process costing : Which of the following does not describe a characteristic of process costing? All units of production receive precisely the same amount of material, labor, and overhead.

Formula for computing predetermined overhead rate : A credit balance in the Manufacturing Overhead account at the end of an interim month means that: The balance should be reported as a prepaid expense in the monthly balance sheet. The formula for computing a predetermined overhead rate is: A producti..

User Account

All Pages