On October 31, 2018, Alternative Landscapes discarded equipment that had a cost of $26,920. Accumulated Depreciation as of December 31, 2017, was $25,000. Assume annual depreciation on the equipment is $1,920. Journalize the partial-year depreciation expense and disposal of the equipment.

Alternative Landscapes

Journal Entries:

October 31, 2018:

Debit Depreciation on Equipment Expense $1,600

Credit Accumulated Depreciation $1,600

To record the depreciation expense for the period.

Debit Disposal of Equipment $26,920

Credit Equipment $26,920

To record the discarding of equipment.

Debit Accumulated Depreciation $26,600

Credit Disposal of Equipment $26,600

To record the discarding of equipment.

Debit Loss on Disposal $320

Credit Disposal of Equipment $320

To record the loss arising from the discarding of equipment.

Explanation:

a) Data and Calculations:

Cost of equipment = $26,920

Accumulated depreciation = $25,000

Current year's depreciation = $1,920 * 10/12 = $1,600

Total accumulated depreciation = $26,600

Loss on disposal = $320 ($26,920 - $26,600)

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

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