During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It...
During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000.
What was the profit or loss on disposal, and what journal entries are needed to record the disposal?
(25 marks)
Homework Answers
Carrying value = Cost - Accumulated depreciation
= $180,000 - $138,000
= $42,000
Loss on disposal = Sale price - Carrying value
= $36,000 - $42,000
= $6,000
JOURNAL ENTRY
| Cash | $36,000 | |
| Loss on sale | $6,000 | |
| Accumulated depreciation | $138,000 | |
| Asset | $180,000 |
Add Answer to:
During the year to 30 June 20X7, Eugene Ltd sold a non-current
asset for $36,000. It...
On 30 June 2020, the statement of financial position of Wolfe Ltd showed the following non-...
On 30 June 2020, the statement of financial position of Wolfe Ltd showed the following non- current assets after charging depreciation: Land $400,000 Buildings $200,000 Accum. depn. - buildings (100,000) $100,000 Equipment $150,000 Accum. depn. - equipment (50.000) $100,000 Goodwill $40,000 The company has adopted fair value for the valuation of non-current assets. In the previous year, the company had valued land down from its original value of $410,000 to $400,000. On 30 June 2020, and independent valuer assessed the...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester incurred $1,120 of removal and selling costs on disposal. The equipment cost $350,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $56,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same...
At 31 July 20X6, Helios International had non-current assets which had cost $310,000. At the same date, the accumulated depreciation on the assets was $120,000. The company had not disposed of any non-current assets during the year to 31 July 20X7, but acquired an asset at a cost of $79,200 on 1 January 20X7. Helios International depreciates non-current assets at a rate of 25% per annum. What is the company’s depreciation charge for the year to 31 July 20X7 using:...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $250,200 cash. Manchester...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $250,200 cash. Manchester incurred $1,440 of removal and selling costs on disposal. The equipment cost $450,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $72,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
Question 1 The ledger of Uniform Ltd on 30 June of the current year includes these...
Question 1 The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared. Credits 100 Debits $12,600 9,170 103,920 110 120 121 200 Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Bank loan Rent revenue received in advance Rent revenue Interest expense Wage expense $28,630 74,550 34,380 244,920 210 300 400 410 51,090 An analysis of the accounts shows the following. 1. 2. 3. 4. 5. The...
The draft statement of profit or loss of Event Light Ltd for the year ended 30...
The draft statement of profit or loss of Event Light Ltd for the year ended 30 June 2020 showed a profit before tax of $25 240, included the following items of income and expense: Government grant (exempt from tax) Proceeds on sale of plant Carrying amount of plant sold Impairment of goodwill Bad debts expense Depreciation expense – plant Insurance expense Long-service leave expense 6 000 23 000 20 000 11 100 8 100 14 000 12 900 14 500...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales Cost of Sales Inventory Dr15 000 Cr 13 000...
Oriole Ltd. purchased an electric wax melter on April 30, 2020, by trading in its old...
Oriole Ltd. purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter Cash paid Cost of old melter (5-year life, $620 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market $15,600 10,600 12,620 7,200 5,900 Assuming that Oriole's fiscal year ends on December 31 and depreciation has been...
B. Prepare the deferred tax worksheet as at 30 June 2019 and the tax journal entries....
B. Prepare the deferred tax worksheet as at 30 June 2019 and the
tax journal entries. 15 marks
QUESTION 2 30 marks DaJen Ltd prepared a draft statement of profit and loss (P/L) for the year ended 30 June 2019 which showed a profit before tax of $24 420. The P/L included the following items of income and expense: Government grant (exempt from tax) Proceeds on sale of plant 5 000 23 000 Bad debts expense Depreciation expense - plant...
During an audit of the inventory records of Winthrop Ltd for the year ended June 30,...
During an audit of the inventory records of Winthrop Ltd for the year ended June 30, 2019, the auditor discovered that the ending inventory balance was overvalued by $180,000. On further investigation, it was discovered that the ending inventory for the previous year was correctly counted and valued, but that the inventory balance as at June 30, 2017, was undervalued by $500,000. Spurred on by the concern for errors undetected in previous periods, a thorough investigation was carried out as...
On 30 June 2020, the statement of financial position of Wolfe Ltd showed the following non- current assets after charging depreciation: Land $400,000 Buildings $200,000 Accum. depn. - buildings (100,000) $100,000 Equipment $150,000 Accum. depn. - equipment (50.000) $100,000 Goodwill $40,000 The company has adopted fair value for the valuation of non-current assets. In the previous year, the company had valued land down from its original value of $410,000 to $400,000. On 30 June 2020, and independent valuer assessed the...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $194,600 cash. Manchester incurred $1,120 of removal and selling costs on disposal. The equipment cost $350,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $56,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
Recording Fixed Asset Disposal Manchester Company sells equipment on June 1, 2021, for $250,200 cash. Manchester incurred $1,440 of removal and selling costs on disposal. The equipment cost $450,000 when it was purchased on January 2, 2018. Its estimated residual value and useful life were $72,000 and 10 years, respectively. Manchester uses straight-line depreciation and records annual depreciation on each December 31. a. Prepare the journal entries needed to record the asset disposal on June 1, 2021. b. Record the...
Question 1 The ledger of Uniform Ltd on 30 June of the current year includes these selected accounts and corresponding account numbers before adjusting entries have been prepared. Credits 100 Debits $12,600 9,170 103,920 110 120 121 200 Prepaid insurance Supplies Equipment Accumulated depreciation-equipment Bank loan Rent revenue received in advance Rent revenue Interest expense Wage expense $28,630 74,550 34,380 244,920 210 300 400 410 51,090 An analysis of the accounts shows the following. 1. 2. 3. 4. 5. The...
Paused : Question 5 Week 9 (11 marks) (a) Jessica Ltd sold inventory during the current period to its wholly owned subsidiary, Amelie Ltd, for $15 000. These items previously cost Jessica Ltd $12 000. Amelie Ltd subsequently sold half the items to Ningbo Ltd for $8000. The tax rate is 30%. The group accountant for Jessica Ltd, Li Chen, maintains that the appropriate consolidation adjustment entries are as follows: Sales Cost of Sales Inventory Dr15 000 Cr 13 000...
Oriole Ltd. purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter Cash paid Cost of old melter (5-year life, $620 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market $15,600 10,600 12,620 7,200 5,900 Assuming that Oriole's fiscal year ends on December 31 and depreciation has been...
B. Prepare the deferred tax worksheet as at 30 June 2019 and the
tax journal entries. 15 marks
QUESTION 2 30 marks DaJen Ltd prepared a draft statement of profit and loss (P/L) for the year ended 30 June 2019 which showed a profit before tax of $24 420. The P/L included the following items of income and expense: Government grant (exempt from tax) Proceeds on sale of plant 5 000 23 000 Bad debts expense Depreciation expense - plant...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago