On January 1, 2012, Kamloops Corporation Purchased Equipment for $15,500

question 42

Essay

On January 1, 2012, Kamloops Corporation purchased equipment for $15,500. Kamloops Corporation expected the equipment to remain in service for 4 years and have a residual value of $1,500. Kamloops Corporation amortized the equipment using double-declining-balance depreciation. On June 30, 2014, Kamloops Corporation sold the equipment for $3,750 cash.
Prepare journal entries on June 30, 2014, to record depreciation expense for the six months ended June 30, 2014, and to sell the equipment.

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a given period.

Year 2

Designates the second fiscal or calendar year in a sequence of years, crucial for tracking progress, budgets, and planning in various contexts.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Year 2

Refers to the second year of a project, company's fiscal year, or any specified time period.