Question

(c) Prepare the plant assets section of Arnold's balance sheet at December 31, 2018. (c) Tot. plant assets $50,037500 Journalize entries for disposal of plant assets. Date $71,000Jan.L, 2007 30,000Jan. 1. 2014 10 of the a ck was discarded on December all entries requ 10,600 Need gstown Company reported the following property, plant, and equipment accounts: Accumulated depreciation buildings s 62.200,000 Accumulated depreciation equipment 54,000,000 Buildings Equipment Land 97.400,00o 150,000,0oo 20,000,000 Add Note 255 PM

Answer 1

The following are the required journal entries:

jan 1,2017	Accumulated depreciation, machinery a/c	$71,000
	................To Machinery a/c		$71,000
	(retiring of machinery acquired on january 1,2007 with an estimated life of 10 years, fully depreciated by december 31,2016)
June 30	Depreciation expense a/c	$3,000
	.................To Accumulated depreciation, forklift		$3,000
	(half year depreciation charged on forklift = actual cost / estimated life *1/2)=> ($30,000 / 5 years*1/2)
june 30	Cash a/c	$12,000
	Accumulated depreciation, forklift a/c	$21,000
	......................To Forklift a/c		$30,000
	.....................To gain on sale of forklift		$3,000
	(accumulated depreciation = cost / estimated life * expired life) (3.5 years have expired) ($30,000/5 years * 3.5 years =>$21,000) (gain on sale of forklift = cash received + accumulated depreciation - cost of forklift)=>(12,000 + 21,000- 30,000 =>$3,000)
Dec 31	Depreciation expense a/c	$3,800
	............To Accumulated depreciation -truck a/c		$3,800
	(annual depreciation = (cost - salvage value)/ number of years =>(33,400 - 3,000)/ 8 years =>3,800)
dec 31	Accumulated depreciation -truck a/c	$22,800
	Loss on disposal of truck a/c	$10,600
	......................To Truck A/c		$33,400
	(accumulated depreciation = annual depreciation * life expired)=>($3800*6 years =>$22,800) loss on disposal of truck = cost - accumulated depreciation => 33,400 - 22,800 =>$10,600)