Here Are Selected 2014 Transactions of Howe Corporation

question 230

Essay

Here are selected 2014 transactions of Howe Corporation.
Jan. 1 Retired a piece of equipment that was purchased on January 1, 2004. The equipment cost $55,000 and had a useful life of 10 years with no salvage value.
June 30 Sold equipment that was purchased on January 1, 2012. The equipment cost $78,000 and had a useful life of 3 years with no salvage value. The equipment was sold for $9,000 cash.
Dec. 31 Sold equipment for $12,500 cash. The equipment cost $43,000 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,000 salvage value.
Instructions
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Howe Corporation uses straight-line depreciation.

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Definitions:

Proxy

A form of authorization given by a shareholder or other party allowing another person to vote or act on their behalf, often used in corporate settings.

Corporate Matters

Issues or affairs related to the governance, management, and regulatory compliance of corporations.

Model Business Corporation Act (MBCA)

A set of laws proposed by legal experts to guide states in the establishment of their corporate statutes.

Quarterly Meeting

A scheduled meeting that occurs four times a year, typically to review quarterly performance and plan for future strategies.