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!

dr. Cash 520
dr. Acc depr 2400
dr. Loss on disposal 1480 (520-2000)
Cr. Cost 4400

Have you read the part about where we aren't here to do people's homework for them? Yes, I realize you don't care, but you aren't really helping anyone by doing that.