nent CULATOR FULL SCREEN PRINTER VERSION BACK Exercise 99 Sh

nent CULATOR FULL SCREEN PRINTER VERSION BACK Exercise 9-9 Shown below are the T-accounts relating to equipment that was purchased for cash company straight-line basis with an estimated useful Iife of 10 years and a savay a compay on the first day of the current year. The equipment was deprediated on a lfe of 10 years and a salvage value of $100. Part of the equipment was sold on the last day of the current year for cash proceeds. Cash an. 1 Dec. 31 450 Equipment Jan. 1 1,100 Dec. 31 440 Accumulated Depreciation-Equipment Dec. 31 40 Dec. 31 100 Dec. 31 Depreciation Expense Dec. 31 tb) Gain on Disposal of Plant Assets Dec. 31 Prepare the journal entries to record purchase of equipment on January 1. (Credit account titles are automatically indented when the amount is en manually. If no entry is required, select \"No Entry\" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 Debit Credit

Solution

Journal entries to record the purchase and sale of equipment is as shown below:

Date

Particulars

L.F

Amount ($)

Amount ($)

Jan-01

Equipment

1,100

Cash

1,100

(For equipment purchased for cash)

Dec-31

Depreciation (1,100-100)/10

100

Accumulated dep.- equipment

100

(for depreciation recorded)

Dec-31

Cash

450

Accumulated dep.

40

Equipment

440

Gain on sale of plant assets

50

(for asset sold)

Cash

Particulars

Amount

Particulars

Amount

Dec-31

450

Jan-01

1,100

Equipment

Particulars

Amount

Particulars

Amount

Jan-01

1,100

Dec-31

440

Accumulated dep.- Equipment

Particulars

Amount

Particulars

Amount

Dec-31

100

Dec-31

40

Dec-31

55

Depreciation exp

Particulars

Amount

Particulars

Amount

Dec 31 (1,100-100)/10

100

Gain on disposal of plant assets

Particulars

Amount

Particulars

Amount

Dec-31

50

Date	Particulars	L.F	Amount ($)	Amount ($)
Jan-01	Equipment		1,100
	Cash			1,100
	(For equipment purchased for cash)
Dec-31	Depreciation (1,100-100)/10		100
	Accumulated dep.- equipment			100
	(for depreciation recorded)
Dec-31	Cash		450
	Accumulated dep.		40
	Equipment			440
	Gain on sale of plant assets			50
	(for asset sold)