Required 1 Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in nillions (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 Cash General Journal Debit Credit 80 Accumulated depreciation 1,324 Loss on sale of property and equipment Property and equipment

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter15: Preparing Adjusting Entries And A Trial Balance
Section15.3: Adjusting Accumulated Depreciation
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  • 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 cash flows. If the carrying amount of the asset is determined not to be recoverable, a write-down to fair value is recorded. Fair values are determined based on quoted market values, discounted cash flows, or external appraisals, as appropriate.

      Dollars in Millions
    Cost of property and equipment (beginning of year) $ 54,524
    Cost of property and equipment (end of year) 59,736
    Capital expenditures during the year 6,410
    Accumulated depreciation (beginning of year) 27,936
    Accumulated depreciation (end of year) 29,260
    Depreciation expense during the year 2,390
    Cost of property and equipment sold during the year 1,198
    Accumulated depreciation on property sold 1,066
    Cash received on property sold 80

    Required:

    1. Reconstruct the journal entry for the disposal of property and equipment during the year.
    2. Compute the amount of property and equipment that United Presents wrote off as impaired during the year, if any. (Hint: Set up T-accounts.)
Required 1
Required 2
Reconstruct the journal entry for the disposal of property and equipment during the year.
lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in
nillions (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
Cash
General Journal
Debit
Credit
80
Accumulated depreciation
1,324
Loss on sale of property and equipment
Property and equipment
Transcribed Image Text:Required 1 Required 2 Reconstruct the journal entry for the disposal of property and equipment during the year. lote: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in nillions (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 Cash General Journal Debit Credit 80 Accumulated depreciation 1,324 Loss on sale of property and equipment Property and equipment
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