Homework Answers
Entry for sale of equipment
Depreciation = 68000 - 9000 / 8 = 7375
Accumulated Depreciation balance at the end of 6th year = 7375 x 6 = 44250
1) cash received 30000
Cash Account Dr 30000
Accumulated Depreciation Account Dr 44250
To Asset Account 68000
To Gain on Sale of Asset Account 6250 (Balancing Figure)
2) cash received 23750
Cash Account Dr 23750
Accumulated Depreciation Account Dr 44250
To Asset Account 68000
3) cash received 21000
Cash Account Dr 21000
Accumulated Depreciation Account Dr 44250
Loss on sale of asset Account Dr 2750 (balancing figure)
To Asset Account 68000
Cash Account will be debited in every case ,accumulated depreciation will be reversed with the depreciation of 6 years , asset account will be credited because asset is sold ,gain /loss will be balancing figure.
Add Answer to:
Sale of Plant Asset Shannon Company has a equipment that originally cost $68,000. Depreciation has been...
Sale of Plant Asset Shannon Company has a equipment that originally cost $68,000. Depreciation has been...
Sale of Plant Asset Shannon Company has a equipment that originally cost $68,000. Depreciation has been recorded for six years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected eight-year life. After recording depreciation at the end of six years, Shannon sells the equipment. Prepare the journal entry to record the equipment's sale for (Round to the nearest dollar): a. $30,000 cash b. $23,750 cash c. $21,000 cash General Journal Description Date Debit...
E9-7B. Sale of Plant Asset Shannon Company has equipment that originally cost $68,000. Depreciation has been...
E9-7B. Sale of Plant Asset Shannon Company has equipment that originally cost $68,000. Depreciation has been recorded for six years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected eight-year life. After recording depreciation at the end of six years. Shannon sells the equipment. Prepare the journal entry to record the equipment's sale for: a. $30,000 cash. b. $23,750 cash. c. $21,000 cash.
Sale of Plant Asset Raine Company has a machine that originally cost $75,000. Depreciation has been...
Sale of Plant Asset Raine Company has a machine that originally cost $75,000. Depreciation has been recorded for five years using the straight-line method, with a $12,000 estimated salvage value at the end of an expected nine-year life. After recording depreciation at the end of five years, Raine sells the machine. Prepare the journal entry to record the machine’s sale for (Round to the nearest dollar): a. $50,000 cash b. $40,000 cash c. $35,000 cash General Journal Date Description Debit...
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been...
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight- line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine Determine the gain or loss in each scenario if the machine sold for: Scenario Gain, Loss, or Neither Amount a $37.000 cash b. $36,800 cash C. $28,000 cash
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its...
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its own executive charter plane that originally cost $800,000. It has recorded straight line depreciation on the plane for six full years, with a $80,000 expected salvage value at the end of its estimated 10 year useful life. Sloan disposes of the plane at the end of the sixth year a. At the disposal date, what is the (1) accumulated depreciation and (2) net book...
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Palepu Company owns and...
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Palepu Company owns and operates a delivery van that originally cost $27,200. Straight-line depreciation on the van has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposes of this van. a. Compute the net book value of the van on the...
Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of...
Depreciation by Two Methods; Sale of Fixed Asset New lithographic equipment, acquired at a cost of $875,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $75,300. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On March 4 of Year 5, the equipment was sold for $128,100. Required: 1. Determine the annual depreciation expense...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $51,200. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. a. Compute the net book value of the van on...
27. A plant asset originally cost $64,000 and was estimated to have a $4,000 salvage value...
27. A plant asset originally cost $64,000 and was estimated to have a $4,000 salvage value at the end of its 5-year useful life. If at the end of three years, the asset was sold for $12,000, and had accumulated depreciation recorded of $36,000, the company should recognize a ______________ on disposal in the amount of $____________. 28. The cost of a patent should be amortized over its __________________ life or its _______________ life, whichever is shorter. 29. In recording...
Exercise 18.7 will heseno cery and in 2002 Recording the sale of plant and equipment Pro...
Exercise 18.7
will heseno cery and in 2002 Recording the sale of plant and equipment Pro Comune che con 12.000 Depreciation wing. halosen on the truck up to four who was for I. Ghe thermal cry forced the 2. Auame, decal that the makis 3:20. Give the journal erary recorded Recording asset tradision. Exercise 18.7 Objective 184 Property. Plant, and Equipment CHAPTER 18 651 Exercise 18.3 Objective 18-2 Exercise 18.4 Objective 18-2 Exercise 18.5 Objective 18-2 Exercise 18.6 Objective 18-3...
Sale of Plant Asset Shannon Company has a equipment that originally cost $68,000. Depreciation has been recorded for six years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected eight-year life. After recording depreciation at the end of six years, Shannon sells the equipment. Prepare the journal entry to record the equipment's sale for (Round to the nearest dollar): a. $30,000 cash b. $23,750 cash c. $21,000 cash General Journal Description Date Debit...
E9-7B. Sale of Plant Asset Shannon Company has equipment that originally cost $68,000. Depreciation has been recorded for six years using the straight-line method, with a $9,000 estimated salvage value at the end of an expected eight-year life. After recording depreciation at the end of six years. Shannon sells the equipment. Prepare the journal entry to record the equipment's sale for: a. $30,000 cash. b. $23,750 cash. c. $21,000 cash.
Sale of Plant Asset Raine Company has a machine that originally cost $58,000. Depreciation has been recorded for four years using the straight- line method, with a $5,000 estimated salvage value at the end of an expected ten-year life. After recording depreciation at the end of four years, Raine sells the machine Determine the gain or loss in each scenario if the machine sold for: Scenario Gain, Loss, or Neither Amount a $37.000 cash b. $36,800 cash C. $28,000 cash
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Sloan Company uses its own executive charter plane that originally cost $800,000. It has recorded straight line depreciation on the plane for six full years, with a $80,000 expected salvage value at the end of its estimated 10 year useful life. Sloan disposes of the plane at the end of the sixth year a. At the disposal date, what is the (1) accumulated depreciation and (2) net book...
Computing Depreciation, Asset Book Value, and Gain or Loss on Asset Sale Palepu Company owns and operates a delivery van that originally cost $27,200. Straight-line depreciation on the van has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the third year, at which time Palepu disposes of this van. a. Compute the net book value of the van on the...
Computing Depreciation, Net Book Value, and Gain or Loss on Asset Sale Lynch Company owns and operates a delivery van that originally cost $51,200. Lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. Depreciation was last recorded at the end of the fourth year, at which time Lynch disposes of this van. a. Compute the net book value of the van on...
Exercise 18.7
will heseno cery and in 2002 Recording the sale of plant and equipment Pro Comune che con 12.000 Depreciation wing. halosen on the truck up to four who was for I. Ghe thermal cry forced the 2. Auame, decal that the makis 3:20. Give the journal erary recorded Recording asset tradision. Exercise 18.7 Objective 184 Property. Plant, and Equipment CHAPTER 18 651 Exercise 18.3 Objective 18-2 Exercise 18.4 Objective 18-2 Exercise 18.5 Objective 18-2 Exercise 18.6 Objective 18-3...
Most questions answered within 3 hours.
-
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 54 minutes ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 56 minutes ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 1 hour ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 1 hour ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 1 hour ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 1 hour ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 1 hour ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 1 hour ago -
Inheritance pattern in BRCA 1
Describe the inheritance pattern of BRCA 1 Is it recessive or...
asked 1 hour ago