Recording Asset Disposal Equipment that cost $36,000 on January 1, 2015, is sold for $20,000 on June
Recording Asset Disposal Equipment that cost $36,000 on January 1, 2015, is sold for $20,000 on June 30, 2020. It had been depreciated over a 10-year life by the straight-line method, assuming its residual value would be $3,000. A warehouse that cost $300,000, residual value $30,000, was being depreciated over 20 years by the straight-line method. When the structure was 15 years old, an additional wing was constructed at a cost of $180,000. The estimated life of the wing considered separately was 15 years, and its residual value is $20,000. The accounting period ends December 31. a. Prepare journal entries required to record the following. 1. Sale of the equipment. 2. Cost of additional wing to the warehouse; costs paid in cash. 3. Depreciation on the warehouse and its additional wing after the latter has been in use for one year. ● Note: List multiple debits or credits (when applicable) in alphabetical order. ● Note: Round amounts to the nearest whole dollar. May 16 2022 03:09 PM
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