Journal Entries: Disposition of Plant AssetsPrepare the entries for the transactions using a general journal.1. Discarding an asset.a. On January 4, shelving units, which had a cost of $6,400 and had accumulateddepreciation of $5,900, were discarded.b. On June 15, a hand cart, which had a cost of $1,500 and had accumulateddepreciation of $1,350, was sold for $150.c. On October 1, a copy machine, which had a cost of $7,200 and had accumulateddepreciation of $6,800, was sold for $450.Page: 1DOC. POST.NO. REF.DATE ACCOUNT TITLEDEBITCREDIT20--1Jan. 42234.4June 15667789.Oct. 191010111112122. Exchange or trade-in of assets.a. On December 31, a drill press, which had a cost of $60,000 and had accumulateddepreciation of $48,000, was traded in for a new drill press with a fair marketvalue of $75,000. The old drill press and $65,000 in cash were given for the newdrill press.b. On December 31, the old drill press in (a) and $60,000 in cash were given for thenew drill press.Page: 1DOC. POST.NO. REF.DATEACCOUNT TITLEDEBITCREDIT20--1Dec. 3123445.6.6.731789.910101111

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Description: Journal Entries: Disposition of Plant AssetsPrepare the entries for the transactions using a general journal.1. Discarding an asset.a. On January 4, shelving units, which had a cost of $6,400 and had accumulateddepreciation of $5,900, were discarded

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Journal Entries: Disposition of Plant Assets Prepare the entries for the transactions using a general journal. 1. Discarding an asset. a. On January 4, shelving units, which had a cost of $6,400 and had accumulated depreciation of $5,900, were discarded. b. On June 15, a hand cart, which had a cost of $1,500 and had accumulated depreciation of $1,350, was sold for $150. On October 1, a copy machine, which had a cost of $7,200 and had accumulated depreciation of $6,800, was sold for $450. Page: 1

Journal Entries: Disposition of Plant Assets Prepare the entries for the transactions using a general journal. 1. Discarding an asset. a. On January 4, shelving units, which had a cost of $6,400 and had accumulated depreciation of $5,900, were discarded. b. On June 15, a hand cart, which had a cost of $1,500 and had accumulated depreciation of $1,350, was sold for $150. On October 1, a copy machine, which had a cost of $7,200 and had accumulated depreciation of $6,800, was sold for $450. Page: 1

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 11SPA: DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts Co. had the following plant asset transactions...

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Journal Entries: Disposition of Plant Assets 1. Discarding an asset. On January 4, shelving units, which had a cost of $6,360 and had accumulated depreciation of $5,790, were discarded. On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,310, was sold for $120. On October 1, a copy machine, which had a cost of $7,740 and had accumulated depreciation of $7,250, was sold for $550. If an amount box does not require an entry, leave it blank. Prepare the entries for the transactions using a general journal. 2. Exchange or trade-in of assets. On December 31, a drill press, which had a cost of $59,990 and had accumulated depreciation of $48,910, was traded in for a new drill press with a fair market value of $74,250. The old drill press and $65,170 in cash were given for the new drill press. On December 31, the old drill press in (a) and $60,430 in cash were given for the new drill press. If an amount box does not require an entry, leave it blank.…
Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Motor #12, which had a cost of $2,800 and accumulated depreciation of Jan. 1 $2,800, was discarded. Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000, 8 was sold for $200. Motor #16, which had a cost of $5,600 and accumulated depreciation of 14 $5,400, was sold for $450. 2. Assets exchanged or traded in: Feb. 1 Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800, was traded in for a new motor (#22) with a fair market value of $7,000. The old motor and $5,600 in cash were given for the new motor. ° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500. The old motor and $6,200 in cash were given for the new motor. Required: Prepare general journal entries for the transactions. Page: 1 DOC. POST NO. REF.…
a. What was the annual amount of depreciation for the Years 1-3 using the straight-line method of depreciation? b. What was the book value of the equipment on January 1 of Year 4? c. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles. d. Assuming that the equipment had been sold on January 3 of Year 4 for $410,485 instead of $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of account titles.
DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Jan. 1 Van #11, which had a cost of 8,800 and accumulated depreciation of 8,800, was discarded. 8 Van #7, which had a cost of 9,400 and accumulated depreciation of 9,000, was sold for 200. 14 Van #13, which had a cost of 7,600 and accumulated depreciation of 7,400, was sold for 250. 2. Assets exchanged or traded in: Feb. 1 Van #8, which had a cost of 11,000 and accumulated depreciation of 8,800, was traded in for a new van (#20) with a fair market value of 13,000. The old van and 10,500 in cash were given for the new van. 9 Van #3, which had a cost of 7,500 and accumulated depreciation of 7,000, was traded in for a new van (#21) with a fair market value of 9,500. The old van and 9,200 in cash were given for the new van. REQUIRED Prepare general journal entries for the transactions.
Pitney Company purchased an office building, land, and furniture for $728,100 cash. The appraised value of the assets was as follows. $ 138,630 195,713 481,128 $ 815,472 Land Building Furniture Total Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model. c. Prepare the general journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount to be recorded on the books for each asset. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Furniture Total
Pitney Company purchased an office building, land, and furniture for $631,100 cash. The appraised value of the assets was as follows. Land Building Furniture Total $ 84,820 261,528 360,484 $ 706,832 Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model. c. Prepare the general journal entry to record the purchase.
Allocating payments and receipts to fixed asset accountsThe following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. A. Fee paid to attorney for title search.............. $2,500 B. Cost of real estate acquired as a plant site: Land 285,000 C. Delonquent real estate taxes on property, assumed by purchaser...... 15,500 D. Cost of razing and removing building acquired in B......... 5,000 E. Proceeds from sale of salvage materials from old building........ 4,000* F. Special assessment paid to city for extension of water main to the property...... 29,000 G. Architect's and engineer's fees for plans and supervision........ 60,000 H. Premium on one-year insurance policy during construction..... 6,000 I. Cost of filling and grading land............. 12,000 J. Money borrowed to pay building contactor....... 900,000* K. Cost of…
DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Jan. 1 Motor #12, which had a cost of 2,800 and accumulated depreciation of 2,800, was discarded. 8 Motor #8, which had a cost of 4,400 and accumulated depreciation of 4,000, was sold for 200. 14 Motor #16, which had a cost of 5,600 and accumulated depreciation of 5,400, was sold for 450. 2. Assets exchanged or traded in: Feb. 1 Motor #6, which had a cost of 6,000 and accumulated depreciation of 4,800, was traded in for a new motor (#22) with a fair market value of 7,000. The old motor and 5,600 in cash were given for the new motor. 9 Motor #9, which had a cost of 5,500 and accumulated depreciation of 5,000, was traded in for a new motor (#23) with a fair market value of 6,500. The old motor and 6,200 in cash were given for the new motor. REQUIRED Prepare general journal entries for the transactions.
Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and accumulated depreciation of 8,000 was sold for 2,500. b. A machine with a cost of 10,000 and accumulated depreciation of 8,000 was traded for a new machine with a market value of 12,000. Cash of 9,500 was also paid.
Disposal of fixed asset Instructions Chart of Accounts First Questions Journal Instructions First Questions X Journal Equipment acquired on January 6 at a cost of C. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of $459,240 has an estimated useful life of 19 year a. What was the annual amount of depreciation for account titles. and an estimated residual value of $62,805. the Years 1-3 using the straight-line method of depreciation? PAGE 1 a. What was the annual amount of Year 1 $ JOURNAL depreciation for the Years 1-3 using the depreciation ACCOUNTING FOUATION. straight-line method of depreciation? DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY expense b. What was the book value of the 1 Year 2 $ equipment on January 1 of Year 4? 2 depreciation c. Assuming that the equipment was sold expense 3 on January 3 of Year 4 for $379,920, Year 3 2$ 4…
Knowledge Check 01 On October 1, equipment costing $10,700, on which $7,070 of accumulated depreciation has been recorded (through that date) was sold for $2,070 cash. Prepare the appropriate journal entry for the sale of the equipment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Impact of Improvements and Replacements on the Calculation of Depreciation 1. Using the straight-line method, prepare general journal entries for depreciation on December 31, 20-1, for Simulators A and B. If an amount box does not require an entry, leave it blank. 2. Enter the transactions for January 20-2 in a general journal. If an amount box does not require an entry, leave it blank. 3. Assuming no other additions, improvements, or replacements, calculate the depreciation expense for each simulator for 20-2 through 20-8. If required, round your answers to the nearest cent. On January 1, 20-1, two flight simulators were purchased by a space camp for $77,000 each with a salvage value of $5,000 each and estimated useful lives of eight years. On January 1, 20-2, the hydraulic system for Simulator A was replaced for $6,000 cash and an updated computer for more advanced students was installed in Simulator B for $9,000 cash. The hydraulic system is expected to extend the life of…