Explore BrainMass

Explore BrainMass

    Accounting treatment for the disposal of P,P&E

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2007. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2010. The machinery is sold on September 1, 2011, for $10,500.

    Prepare journal entries to
    (a) update depreciation for 2011 and
    (b) record the sale.
    (c)Use the information presented for Ottawa Corporation, but assume the machinery is sold for $5,200 instead of $10,500.

    Prepare journal entries to
    (a) update depreciation for 2011 and
    (b) record the sale

    © BrainMass Inc. brainmass.com June 4, 2020, 2:03 am ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-treatment-for-the-disposal-of-p-p-e-435655

    Solution Preview

    a. Depreciation expense (2400*8/12) 1600
    Accumulated depreciation 1600

    b. Cash ...

    $2.19

    ADVERTISEMENT