Outline the accounting entries required when plant assets are disposed by a company.
Homework Answers
Companies dispose of plant assets in three ways: (1) Retirement, (2) Sale, or (3) Exchange.
(1) Retirement
Debit Accumulated Depreciation full amount of depreciation taken over the life of the asset
Credit the Plant Asset account at the Original Cost
(2) Sale
Compare book value and the proceeds received from the sale
Gain if proceeds > book value ....
Debit- Cash from the sale
Debit - Accumulated Depreciation - Equipment
Credit - Equipment
Credit - Gain on Disposal of Plant Assets
Loss if proceeds < book value
Debit- Cash from the sale
Debit - Accumulated Depreciation- Equipment
Debit - Loss on Disposal of Plant Assets
Credit - Equipment
(3) Exchange
Debit Accumulated Depreciation
Credit the Plant Asset account
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Outline the accounting entries required when plant assets are disposed by a company.
2. The sheiving Was sond During the current year, Ramirez Developers disposed of plant assets in...
2. The sheiving Was sond During the current year, Ramirez Developers disposed of plant assets in the following transactios LEM 9.4A sal of Plant Office equipment costing $26,000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the office equipment amounted to $25,800 Feb. 10 Ramirez sold land and a building to Claypool Associates for $900,000, receiving $100,000 cash and a five-year, 9 percent note receivable for the remaining balance. Ramirez's records...
Journal Entries for Plant Assets During the first few days of the year, Coast Company entered...
Journal Entries for Plant Assets During the first few days of the year, Coast Company entered into the following transactions: 1 Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. The assessed valuations for property tax purposes show the land at $80,000 and the building at $720,000. 2 Paid $31,200 for the construction of...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Asset Cost Value Life Machine $ 40,000 $ 4,700 5 years Accumulated Depreciation (straight-line) $ 28, 240 (4 years) Machine 76,200 5,400 12 years 53,100 (9 years The machines were disposed of in the following ways. a Machine A: Sold on January 1 for $12,000 cash. b. Machine B: On January 1, this machine was sold to a...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Depreciation (straight-line) $ 28,240 (4 years) Original Residual Estimated Life Asset Value Cost Machine $ 40,000 $4,700 5 years A Machine 12 years 53,100 (9 years) 5, 400 76,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $12,000 cash b. Machine B: On January 1, this machine was sold to a...
During the current year, Merkley Company disposed of three different assets. On January 1 of the...
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line) Machine A $ 39,000 $ 3,000 10 years $ 28,800 (8 years) Machine B 49,000 4,000 10 years 36,000 (8 years) Machine C 75,700 5,800 17 years 49,341 (12 years) The machines were disposed of during the current year...
During the current year, Merkley Company disposed of three different assets. On January 1 of the...
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the accounts reflected the following: OriginalResidual Estimated Depreciation Value 3,000 6 years Life Asset Machine A Machine B MachineC Cost straight line) 12,000 (4 years) 4,000 10 years 45,600 (8 years) 6,700 16 years 51,975 (12 ycars) 21,000 61,000 76,000 The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $8,500...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) $63,007 (13 years) Original Residual Estimated Life Cost Value Asset Мachine A $77,200 $4,500 15 years 14,100 (6 years) Machine B 21,000 8 years 2,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash b. Machine B: On January 2, this machine was sold...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $77,200 2 1,000 Residual Value $4,500 2,200 Accumulated Depreciation Estimated Life (straight-line) 15 years $63,007 (13 years) 8 years 14,100 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash. b. Machine B: On January 2, this machine was...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 83,200 $ 8,400 15 years $ 64,827 (13 years) Machine B 27,000 3,400 8 years 17,700 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $27,000 cash. Machine B: On January 2, this machine was...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: points Original Coat $79,700 23.500 Residual Value $5,600 2.700 Estimated Lite 15 years years Accumulated Depreciation (straight-line) $64,220 (13 years) 15.600 (6 years) Machine A Machine The machines were disposed of in the following ways: References a Machine A Sold on January 2 for $23,500 cash b. Machine B: On January 2, this machine was sold to...
2. The sheiving Was sond During the current year, Ramirez Developers disposed of plant assets in the following transactios LEM 9.4A sal of Plant Office equipment costing $26,000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the office equipment amounted to $25,800 Feb. 10 Ramirez sold land and a building to Claypool Associates for $900,000, receiving $100,000 cash and a five-year, 9 percent note receivable for the remaining balance. Ramirez's records...
Journal Entries for Plant Assets During the first few days of the year, Coast Company entered into the following transactions: 1 Purchased a parcel of land with a building on it for $900,000 cash. The building, which will be used in operations, has an estimated useful life of 25 years and a salvage value of $60,000. The assessed valuations for property tax purposes show the land at $80,000 and the building at $720,000. 2 Paid $31,200 for the construction of...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Asset Cost Value Life Machine $ 40,000 $ 4,700 5 years Accumulated Depreciation (straight-line) $ 28, 240 (4 years) Machine 76,200 5,400 12 years 53,100 (9 years The machines were disposed of in the following ways. a Machine A: Sold on January 1 for $12,000 cash. b. Machine B: On January 1, this machine was sold to a...
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Depreciation (straight-line) $ 28,240 (4 years) Original Residual Estimated Life Asset Value Cost Machine $ 40,000 $4,700 5 years A Machine 12 years 53,100 (9 years) 5, 400 76,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $12,000 cash b. Machine B: On January 1, this machine was sold to a...
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the accounts reflected the following: OriginalResidual Estimated Depreciation Value 3,000 6 years Life Asset Machine A Machine B MachineC Cost straight line) 12,000 (4 years) 4,000 10 years 45,600 (8 years) 6,700 16 years 51,975 (12 ycars) 21,000 61,000 76,000 The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $8,500...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) $63,007 (13 years) Original Residual Estimated Life Cost Value Asset Мachine A $77,200 $4,500 15 years 14,100 (6 years) Machine B 21,000 8 years 2,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash b. Machine B: On January 2, this machine was sold...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $77,200 2 1,000 Residual Value $4,500 2,200 Accumulated Depreciation Estimated Life (straight-line) 15 years $63,007 (13 years) 8 years 14,100 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash. b. Machine B: On January 2, this machine was...
During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: points Original Coat $79,700 23.500 Residual Value $5,600 2.700 Estimated Lite 15 years years Accumulated Depreciation (straight-line) $64,220 (13 years) 15.600 (6 years) Machine A Machine The machines were disposed of in the following ways: References a Machine A Sold on January 2 for $23,500 cash b. Machine B: On January 2, this machine was sold to...
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