Falcon ltd whose year end is 31 December acquired four identical units of equipment at a...

Falcon ltd whose year end is 31 December acquired four identical units of equipment at a cost of Sh. 600,000 each on 1 April, 2012. The useful life for each piece of the equipment is four years after which it is expected to have a salvage value of sh. 100,000. A similar piece of equipment was acquired on 1 June 2013 at a cost of sh. 700,000. The useful life was estimated at four years and the salvage value sh. 150,000. One unit acquired on 1 April, 2012 was sold for sh. 200,000 on 1 August 2014. On 1 October, 2014 another piece of equipment was acquired 800,000. The estimated useful life was four years and salvage value sh. 200,000. On 1 September, 2015 one unit acquired on 1 April, 2012 was sold at sh. 250,000. The company’s policy is to provide for full years depreciation in the year of purchase and no depreciation in the year of disposal.

Required:
Show the Equipment and Accumulated Depreciation – Equipment accounts for the years 2012 to 2015.

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Expert Solution

ekkarill92 answered 1 year ago

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