Connect 1 Semester Access Card for Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259128547
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 9, Problem 9.2PA
Recording and Interpreting the Disposal of Long-Lived Assets
By Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:
The machines were disposed of in the following ways:
- a. Machine A: Sold on January 1 for $9,000 cash.
- b. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.
Required:
- 1. Give the
journal entry related to the disposal Machine A at the beginning of the current year. - 2. Give the journal entry related to the disposal of Machine B at the beginning of the current year.
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Students have asked these similar questions
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.…
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.
c. 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
DOC. POST.
NO. REF.
DATE ACCOUNT TITLE
DEBIT
CREDIT
20--
1
Jan. 4
2
2
3
4.
4
June 15
6
6
7
7
8
9.
Oct. 1
9
10
10
11
11
12
12
2. Exchange or trade-in of assets.
a. On December 31, a drill press, which had a cost of $60,000 and had accumulated
depreciation of $48,000, was traded in for a new drill press with a fair market
value of $75,000. The old drill press and $65,000 in cash were given for the new
drill press.
b. On December 31, the old drill press in (a) and $60,000 in cash were given for…
a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,740 and their
Accumulated Depreciation was $4,740. No residual value was received.
b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,480.
Required:
Prepare journal entries to record above transactions. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
View transaction list
Journal entry worksheet
A
>
Record the disposal of computers that had cost $4,740 and their accumulated
depreciation to the date of disposal was $4,740.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
4,740
4,740
Chapter 9 Solutions
Connect 1 Semester Access Card for Fundamentals of Financial Accounting
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Ch. 9 - A local politician claimed, to reduce the...Ch. 9 - What is an asset impairment? How is it accounted...Ch. 9 - What is book value? When equipment is sold for...Ch. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - FedEx Corporation reports the cost of its aircraft...Ch. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - (Supplement 9A) How does depletion affect the...Ch. 9 - (Supplement 9B) Over what period should an...Ch. 9 - Prob. 1MCCh. 9 - Prob. 2MCCh. 9 - Prob. 3MCCh. 9 - A company wishes to report the highest earnings...Ch. 9 - Barber, Inc., depreciates its building on a...Ch. 9 - Thornton Industries purchased a machine on July 1...Ch. 9 - ACME. Inc., uses straight-line depreciation for...Ch. 9 - What assets should be amortized using the...Ch. 9 - Prob. 9MCCh. 9 - The Simon Company and the Allen Company each...Ch. 9 - Classifying Long-Lived Assets and Related Cost...Ch. 9 - Prob. 9.2MECh. 9 - Prob. 9.3MECh. 9 - Computing Book Value (Straight-Line Depreciation)...Ch. 9 - Computing Book Value (Units-of-Production...Ch. 9 - Computing Book Value (Double-Declining-Balance...Ch. 9 - Calculating Partial-Year Depreciation Calculate...Ch. 9 - Prob. 9.8MECh. 9 - Recording the Disposal of a Long-Lived Asset...Ch. 9 - Reporting and Recording the Disposal of a...Ch. 9 - Prob. 9.11MECh. 9 - Prob. 9.12MECh. 9 - Computing and Evaluating the Fixed Asset Turnover...Ch. 9 - (Supplement 9A) Recording Depletion for a Natural...Ch. 9 - Prob. 9.15MECh. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Determining Financial Statement Effects of an...Ch. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Prob. 9.8ECh. 9 - Demonstrating the Effect of Book Value on...Ch. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Computing Depreciation and Book Value for Two...Ch. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Prob. 9.2CPCh. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Prob. 9.3PACh. 9 - Prob. 9.4PACh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Prob. 9.4PBCh. 9 - Accounting for Operating Activities (Including...Ch. 9 - Prob. 9.1SDCCh. 9 - Prob. 9.2SDCCh. 9 - Ethical Decision Making: A Mini-Case Assume you...Ch. 9 - Critical Thinking: Analyzing the Effects of...Ch. 9 - Prob. 9.7SDCCh. 9 - Accounting for the Use and Disposal of Long-Lived...
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