Accounting Help
giry1021
hho9e_e9_20_eip_stud.xlsxE9-20
| Accounting, 9e | ||||||
| E9-20 | Partial year depreciation and sale of an asset | |||||
| LO 2, 3 [10-15 minutes] | ||||||
| Students please fill-in areas that are shaded | ||||||
| Student Name | ||||||
| Course Name | ||||||
| Student ID: | ||||||
| Date: | ||||||
| On January 2, 2012, Repeat Clothing Consignments purchased showroom fixtures | ||||||
| for $11,000 cash, expecting the fixtures to remain in service for five years. Repeat | ||||||
| has depreciated the fixtures on a double-declining-balance basis, with zero residual | ||||||
| value. On October 31, 2013, Repeat sold the fixtures for $6,200 cash. | ||||||
| Requirements | ||||||
| 1. | Record both depreciation for 2013 and sale of the fixtures on October 31, 2013. | |||||
| Test Your Knowledge | ||||||
| E9-20 | ||||||
| Req. 1 | ||||||
| Journal | ||||||
| DATE | ACCOUNTS AND EXPLANATIONS | DEBIT | CREDIT | |||
| 2013 | Depreciation for 10 months: | |||||
| Oct 31 | ||||||
| Sale of fixtures: | ||||||
| Oct 31 | ||||||
| Gain on sale of fixtures | 1,800 | |||||
| Calculate 2012 depreciation: | You can also use DDB function in excel: | |||||
| DDB = | $4,400 | for 2012 | ||||
| DDB = | for 10 mo. 2013 | |||||
| Calculate 2013 depreciation | ||||||
| Gain is computed as follows: | ||||||
| Sale price of old fixtures | $ 6,200 | |||||
| Book value of old fixtures: | ||||||
| Cost | $11,000 | |||||
| Less: Accm depreciation | Accm. Depr. | |||||
| Gain on sale…………………………………………………. | ||||||
Jennie April 23
