Required 1 Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acc millions (i.e., 10,000,000 should be entered as 10). View transaction list Journal entry worksheet > 1 Record the disposal of property and equipment during the year. Note: Enter debits before credits. Transaction a General Journal Debit Credit Record entry Clear entry View general journal
In a recent 10-K report, United Presents Service states it “is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry, and the premier provider of global supply chain management solutions.” The following note and data were reported:
NOTE 1—SUMMARY OF ACCOUNTING POLICIES
Property, Plant and Equipment
We review long-lived assets for impairment when circumstances indicate the carrying amount of an asset may not be recoverable based on the undiscounted future
| Dollars in Millions | |
|---|---|
| Cost of property and equipment (beginning of year) | $ 54,728 |
| Cost of property and equipment (end of year) | 59,787 |
| Capital expenditures during the year | 6,580 |
| 28,072 | |
| Accumulated depreciation (end of year) | 29,345 |
| Depreciation expense during the year | 2,560 |
| Cost of property and equipment sold during the year | 1,521 |
| Accumulated depreciation on property sold | 1,287 |
| Cash received on property sold | 165 |
Required:
- Reconstruct the
journal entry for the disposal of property and equipment during the year. - Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)
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