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Alex Ar [27]
3 years ago
14

Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul

in 2017
Prepare the appropriate journal entry to record the disposition of the equipment.
Business
1 answer:
vredina [299]3 years ago
4 0

Answer:

Dr Cash 11,000

Dr Accumulated Depreciation-Equipment 20,000

Equipment 31,000

Explanation:

Preparation of the Journal entry to record the disposition of the equipment

Since we were told that Lewis Company sold

the equipment for the amount of $11,000 in which the Accumulated Depreciation on the equipment to the date of disposal was the amount of $20,000 this means the journal entry to record the disposition of the equipment will be :

Dr Cash 11,000

Dr Accumulated Depreciation-Equipment 20,000

Equipment 31,000

(20,000+11,000)

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Answer:

See below

Explanation:

Given the above information, we can compute variable manufacturing overhead efficiency variance to be;

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Where

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Variable manufacturing overhead efficiency variance

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Crane Company purchases a patent for $161,900 on January 2, 2022. Its estimated useful life is 5 years. (a) Prepare the journal
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Answer:

Explanation:

The journal entry is shown below:

Amortization expense - Patent A/c Dr $32,380

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