ronangoh
Oct 10, 2009, 02:51 AM
Hi all,
Here's my qst:
Kim owns a chinese restaurant. The business fixed assets include some kitchen equipment which cost $38000 when it was purchased on 1 Jan 08.
It was decided that kitchen equipment should be depreciated using the straight line method. It was estimated that the equipment has a useful life of 5 years and a scrap value of $2000. Depreciation is recorded on 31 Dec each year.
On march 28 2010, some of the kitchen equipment was sold for cash $520. The equipment had cost $4400 on 1 Jan 08; at the date of sale the equipment had a net book value of $2000.
Required: Prepare the disposal account recording the profit and loss on sale theof the kitchen equipment .
Thanks!
Here's my qst:
Kim owns a chinese restaurant. The business fixed assets include some kitchen equipment which cost $38000 when it was purchased on 1 Jan 08.
It was decided that kitchen equipment should be depreciated using the straight line method. It was estimated that the equipment has a useful life of 5 years and a scrap value of $2000. Depreciation is recorded on 31 Dec each year.
On march 28 2010, some of the kitchen equipment was sold for cash $520. The equipment had cost $4400 on 1 Jan 08; at the date of sale the equipment had a net book value of $2000.
Required: Prepare the disposal account recording the profit and loss on sale theof the kitchen equipment .
Thanks!