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a. Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. b. Do gains and losses on asset disposals affect gross profit? Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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. Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. b. Do gains and losses on asset disposals affect gross profit? Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ACCT 102

Duning the current year, Hitchcock Developers disposed of plant assets in the following transactions. Feb.10 office equipment costing $24,000 was given to a scrap dealer at no charge, At the date of disposal, accumlated deprecistion on the office equipment amounted to $21,800, Apr. t Hitcheack sold land and a bullding to Claypool Assaclates for $900,000, receiving $100,000 cash and a 5-year, 9 percent note receivable for the remaining balance. Hitchcock's records showed the following amounts: Land, $50,000; Building, 1sse,000; Accumulated Depreciation: Building (at the date of disposal), $260,000, Aug 15 Hitchcock traded ln an old truck for a new one. The old truck had cost $26,000, and its accumulated depreciation amounted to $18,000, The list price of the new truck was $39,000, but Hitchcock negotiated a deal that included a $10,000 trade in allowance for the old truck and a payment of $28,000 in cash. Hitchcock includes trucks In its Vehieles account, Oct. I Hitchcock traded In its old computer system as part of the purchase of a new system, The old system had cost $19, 000, and its accumulated depreciation amounted to $11,000. The new computer's list price was $8,000. Hitchcock accepted a trade in allowance of $500 for the ald computer system, paying $1,500 down in cash and issuing a 1-year, 8 percent note payable for the $6,000 balance owed. Required: a. Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. b. Do gains and losses on asset disposals affect gross profit? Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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 1. 3. 4 Record scrapped office equipment; received no salvage value.
Transcribed Image Text:Duning the current year, Hitchcock Developers disposed of plant assets in the following transactions. Feb.10 office equipment costing $24,000 was given to a scrap dealer at no charge, At the date of disposal, accumlated deprecistion on the office equipment amounted to $21,800, Apr. t Hitcheack sold land and a bullding to Claypool Assaclates for $900,000, receiving $100,000 cash and a 5-year, 9 percent note receivable for the remaining balance. Hitchcock's records showed the following amounts: Land, $50,000; Building, 1sse,000; Accumulated Depreciation: Building (at the date of disposal), $260,000, Aug 15 Hitchcock traded ln an old truck for a new one. The old truck had cost $26,000, and its accumulated depreciation amounted to $18,000, The list price of the new truck was $39,000, but Hitchcock negotiated a deal that included a $10,000 trade in allowance for the old truck and a payment of $28,000 in cash. Hitchcock includes trucks In its Vehieles account, Oct. I Hitchcock traded In its old computer system as part of the purchase of a new system, The old system had cost $19, 000, and its accumulated depreciation amounted to $11,000. The new computer's list price was $8,000. Hitchcock accepted a trade in allowance of $500 for the ald computer system, paying $1,500 down in cash and issuing a 1-year, 8 percent note payable for the $6,000 balance owed. Required: a. Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. b. Do gains and losses on asset disposals affect gross profit? Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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 1. 3. 4 Record scrapped office equipment; received no salvage value.
Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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 く 3. Record scrapped office equipment; received no salvage value. Note: Enter debits before credits. Date General Journal Debit Credit Feb 10 Clear entry View general journal Record entry
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries to record each of the disposal transactions. Assume that depreciation expense on each asset has been recorded up to the date of disposal. Thus, you need not update the accumulated depreciation figures stated in the problem. (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 く 3. Record scrapped office equipment; received no salvage value. Note: Enter debits before credits. Date General Journal Debit Credit Feb 10 Clear entry View general journal Record entry
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