Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Motor #12, which had a cost of $2,800 and accumulated depreciation of Jan. 1 $2,800, was discarded. Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000, 8. was sold for $200. Motor #16, which had a cost of $5,600 and accumulated depreciation of 14 $5,400, was sold for $450. 2. Assets exchanged or traded in: 1 Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800, was traded in for a new motor (#22) with a fair market value of $7,000. The old motor and $5,600 in cash were given for the new motor. ° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500. The old motor and $6,200 in cash were given for the new motor.
Disposition of Assets: Journalizing Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Motor #12, which had a cost of $2,800 and accumulated depreciation of Jan. 1 $2,800, was discarded. Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000, 8. was sold for $200. Motor #16, which had a cost of $5,600 and accumulated depreciation of 14 $5,400, was sold for $450. 2. Assets exchanged or traded in: 1 Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800, was traded in for a new motor (#22) with a fair market value of $7,000. The old motor and $5,600 in cash were given for the new motor. ° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000, was traded in for a new motor (#23) with a fair market value of $6,500. The old motor and $6,200 in cash were given for the new motor.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Disposition of Assets: Journalizing
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Motor #12, which had a cost of $2,800 and accumulated depreciation of
Jan. 1
$2,800, was discarded.
Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000,
8
was sold for $200.
Motor #16, which had a cost of $5,600 and accumulated depreciation of
14
$5,400, was sold for $450.
2. Assets exchanged or traded in:
Feb. 1
Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800,
was traded in for a new motor (#22) with a fair market value of $7,000. The
old motor and $5,600 in cash were given for the new motor.
° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000,
was traded in for a new motor (#23) with a fair market value of $6,500. The
old motor and $6,200 in cash were given for the new motor.
Required:
Prepare general journal entries for the transactions.
Page: 1
DOC. POST
NO. REF.
DATE
ACCOUNT TITLE
DEBIT CREDIT
20--
1
Jan. 1
2
3
3.
4 Jan. 8
4
5.
5
6.
6
7
7.
8.
8.
Jan. 14
9
10
10
11
11
12
12
13
13
14 Feb. 1
14
15
15
16
16
17
17
18
18
19
19
20 Feb. 9
20
21
21
22
22
23
23
24
24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff424b-0e96-4e90-b1d6-dc40303839e0%2Fa2c22051-3c96-4b70-a114-2e28d03aa76c%2F59p7lzf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Disposition of Assets: Journalizing
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Motor #12, which had a cost of $2,800 and accumulated depreciation of
Jan. 1
$2,800, was discarded.
Motor #8, which had a cost of $4,400 and accumulated depreciation of $4,000,
8
was sold for $200.
Motor #16, which had a cost of $5,600 and accumulated depreciation of
14
$5,400, was sold for $450.
2. Assets exchanged or traded in:
Feb. 1
Motor #6, which had a cost of $6,000 and accumulated depreciation of $4,800,
was traded in for a new motor (#22) with a fair market value of $7,000. The
old motor and $5,600 in cash were given for the new motor.
° Motor #9, which had a cost of $5,500 and accumulated depreciation of $5,000,
was traded in for a new motor (#23) with a fair market value of $6,500. The
old motor and $6,200 in cash were given for the new motor.
Required:
Prepare general journal entries for the transactions.
Page: 1
DOC. POST
NO. REF.
DATE
ACCOUNT TITLE
DEBIT CREDIT
20--
1
Jan. 1
2
3
3.
4 Jan. 8
4
5.
5
6.
6
7
7.
8.
8.
Jan. 14
9
10
10
11
11
12
12
13
13
14 Feb. 1
14
15
15
16
16
17
17
18
18
19
19
20 Feb. 9
20
21
21
22
22
23
23
24
24
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