please help me Part BOn 1 July 2016, Winsor Corp. purchased an equipment for $120,000. This equipment is depreciatedusing a straight-line method. The useful life is 6 years and residual value is expected to be zero. Theequipment is revalued on 31 December 2017 and the fair value is $108,000. The company's policy isto use gross elimination method for any accumulated depreciation at the date of revaluation andonly transfer the revaluation reserve, if any, to retained earnings when the equipment is de-recognized. The equipment is sold for $80,000 on 30 June 2018.Required:Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June2018. Indicate the date to each entry. Narratives are not required.

Journal entry is recorded at the time when the asset is purchased in the books of the accounts on…

Answered: Prepare all relevant entries relating…

Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June 2018. Indicate the date to each entry. Narratives are not required.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...

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Question

please help me

Part B
On 1 July 2016, Winsor Corp. purchased an equipment for $120,000. This equipment is depreciated
using a straight-line method. The useful life is 6 years and residual value is expected to be zero. The
equipment is revalued on 31 December 2017 and the fair value is $108,000. The company's policy is
to use gross elimination method for any accumulated depreciation at the date of revaluation and
only transfer the revaluation reserve, if any, to retained earnings when the equipment is de-
recognized. The equipment is sold for $80,000 on 30 June 2018.
Required:
Prepare all relevant entries relating to the equipment for the period from 1 July 2016 to 30 June
2018. Indicate the date to each entry. Narratives are not required.

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