Robert Sporting Goods Company had purchased some equipment (Q107) on January 1, 2014 for $104 000 with an estimated salvage value of $8 000 and a 10-year useful life. On December 31, 2020, there was $67 200 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. In preparation for expansion, on March 31, 2021, that equipment was sold for $21 000.
Required:
i) Complete the following schedule of useful working.
Equipment (Q107):
$
Cost
Answer
Salvage Value
Depreciable base
Annual Depreciation charge
Accumulated depreciation to the date ofdisposal
ii) Prepare the necessary journal entries to record the disposal of the equipment on March 31, 2021. When selecting from dropdown lists, if a line item does not apply, selectNA and place zero in the field in the number column. Do not leave any number fields blank.
March 31, 2021
Dr Answer
$Answer
CrAnswer
Dr Cash
Cr Answer
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