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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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:
- 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.)
- Reconstruct the


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