On August 31 2018 Perfest Landscapes decarded equipment hat

On August 31, 2018, Perfest Landscapes decarded equipment hat had a oost of $23,800. Acumulated Dep eoiation as of December 31, 2015, was $23,000. Assume annual depreciation on the equipment is 3800. Joumaz the parta year depreciation experse and dispa o the equipment. (Record debits first, then edita. Seloot the xplanation on the last ine ot the journal ancry tabla.) Joumalze the parta year depreciation expes Date Debit Credit Aug. 31 Calculate any gan or loss on the disposal of the cqupment Ener 2 Market vale of assets received Less Book value of assel disposed of -for tems ta zaro value. Encer a loos with minus sign or parentheses.) Joumalize the dsposal of the equipment. Date Accounts and Explanation Debit Credit Aug. 31 Cash Sold equipment for cesh

Solution

Journal entry for partial year depreciation expense:

Date

Account title

Debit

Credit

31-Aug-16

Depreciation expense- Equipment

400

                             Accumulated depreciation- Equipment

400

{partial depreciation = (Annual depreciation * 8/12) = $600*8/12]

Calculation of gain or loss on disposal of the equipment:

Market value of the asset received

               $0

Less: Book value of asset disposed of

Cost

          23,600

Less: Accumulated depreciation ($23,000+400)

        (23,400)

            200

Gain or (loss)

         (200)

Journal entry for disposal of the equipment:

Date

Account title

Debit

Credit

31-Aug-16

Accumulated depreciation- Equipment

23,400

Loss on Disposal

200

                          Equipment

23,600

Date	Account title	Debit	Credit
31-Aug-16	Depreciation expense- Equipment	400
	Accumulated depreciation- Equipment		400
	{partial depreciation = (Annual depreciation * 8/12) = $600*8/12]