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ournal Entries: Disposition of Plant Assets 1. Discarding an asset. a. On January 4, shelving units, which had a cost of $6,780 and had accumulated depreciation of $6,200, were discarded. . On June 15, a hand cart, which had a cost of $1,560 and had accumulated depreciation of $1,370, was sold for $190. c. On October 1, a copy machine, which had a cost of $6,630 and had accumulated depreciation of $6,140, was sold for $535. If an amount box does not require an entry, leave it blank. pare 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 $59,680 and had accumulated depreciation of $48,670, was traded in for a new drill press with a fair market value of $74,890. The old drill press and $65,390 in cash were given for the new drill press. On December 31, the old drill press in (a) and $61,200 in cash were given for the new drill press. If an amount box does not require an entry, leave it blank. Prepare the entries for the transactions using a general journal. General Journal . Discarding an asset. a. On January 4, shelving units, which had a cost of $6,780 and had accumulated depreciation of $6,200, were discarded. b. On June 15, a hand cart, which had a cost of $1,560 and had accumulated depreciation of $1,370, was sold for $190. c. On October 1, a copy machine, which had a cost of $6,630 and had accumulated depreciation of $6,140, was sold for $535 If an amount box does not require an entry, leave it blank.

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Gain/(Loss) on disposal of asset = Sale price less Net book value

Journal entries Date Discarding of assets Account Debit CreditCalculation 4-Jan Accumulated Depreciation- Shelving Units 6,200 Loss on disposal of asset Shelving Units 580 -6780-6200 6,780 15-Jun Cash 190 Accumulated Depreciation- Hand Cart Hand Cart 1,370 1,560 535 6,140 1-Oct Cash Accumulated Depreciation- Copy Machine Copy Machine Gain on disposal of asset 6,630 45 -6630-6140-535 Exchange of assets 31-Dec New Drill Press 74,890 48,670 1,510 Accumulated Depreciation- Old Drill Press Loss on exchange of asset Old Drill Press Cash -65390+59680-74890-48670 59,680 65,390 31-Dec New Drill Press 74,890 48,670 Accumulated Depreciation- Old Drill Press Old Drill Press Cash Gain on exchange of asset 59,680 61,200 2,680 -61200+59680-74890-48670

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