College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 18, Problem 11SPB
DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
| Jan. | 1 | Van #11, which had a cost of $8,800 and |
| 8 | Van #7, which had a cost of $9,400 and accumulated depreciation of $9,000, was sold for $200. | |
| 14 | Van #13, which had a cost of $7,600 and accumulated depreciation of $7,400, was sold for $250. |
2. Assets exchanged or traded in:
| Feb. | 1 | Van #8, which had a cost of $11,000 and accumulated depreciation of $8,800, was traded in for a new van (#20) with a fair market value of $13,000. The old van and $10,500 in cash were given for the new van. |
| 9 | Van #3, which had a cost of $7,500 and accumulated depreciation of $7,000, was traded in for a new van (#21) with a fair market value of $9,500. The old van and $9,200 in cash were given for the new van. |
REQUIRED
Prepare general
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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.…
Journal Entries: Disposition of Plant Assets
1. Discarding an asset.
On January 4, shelving units, which had a cost of $6,360 and had accumulated depreciation of $5,790, were discarded.
On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,310, was sold for $120.
On October 1, a copy machine, which had a cost of $7,740 and had accumulated depreciation of $7,250, was sold for $550.
If an amount box does not require an entry, leave it blank.
Prepare the entries for the transactions using a general journal.
2. Exchange or trade-in of assets.
On December 31, a drill press, which had a cost of $59,990 and had accumulated depreciation of $48,910, was traded in for a new drill press with a fair market value of $74,250. The old drill press and $65,170 in cash were given for the new drill press.
On December 31, the old drill press in (a) and $60,430 in cash were given for the new drill press.
If an amount box does not require an entry, leave it blank.…
During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the
disposal of the assets, the accounts reflected the following:
Accumulated Depreciation
Asset
Machine A
Machine B
Original Cost Residual Value
Estimated Life
$33,000
$3,000
12 years
16,800
10 years
Machine C
5,100
17 years
140,000
75,600
(straight line)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $7,500 cash.
$25,000 (10 years)
98,560 (8 years)
49,765 (12 years)
b. Machine B: Sold on December 31 for $54,120; received cash, $43,296, and an $10,824 interest-bearing (12 percent)
note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage
company removed the machine at no cost.
P8-5 Part 1
Required:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b.…
Chapter 18 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 18 - Prob. 1TFCh. 18 - Prob. 2TFCh. 18 - Depreciation is a process of asset valuation; that...Ch. 18 - The straight-line method of depreciation allocates...Ch. 18 - Prob. 5TFCh. 18 - Prob. 1MCCh. 18 - Prob. 2MCCh. 18 - Prob. 3MCCh. 18 - Prob. 4MCCh. 18 - Prob. 5MC
Ch. 18 - The following costs were incurred to purchase a...Ch. 18 - Prob. 2CECh. 18 - Prob. 3CECh. 18 - Grandorf Company replaced the engine in a truck...Ch. 18 - Prepare journal entries for the following...Ch. 18 - Prob. 6CECh. 18 - Prob. 7CECh. 18 - Prob. 1RQCh. 18 - Prob. 2RQCh. 18 - Prob. 3RQCh. 18 - What is meant by the depreciable cost of a plant...Ch. 18 - Prob. 5RQCh. 18 - Prob. 6RQCh. 18 - Prob. 7RQCh. 18 - Prob. 8RQCh. 18 - Prob. 9RQCh. 18 - Prob. 10RQCh. 18 - Prob. 11RQCh. 18 - Prob. 12RQCh. 18 - Prob. 13RQCh. 18 - Prob. 14RQCh. 18 - Prob. 15RQCh. 18 - Prob. 16RQCh. 18 - Prob. 17RQCh. 18 - Prob. 18RQCh. 18 - Prob. 19RQCh. 18 - Prob. 20RQCh. 18 - Prob. 21RQCh. 18 - Prob. 22RQCh. 18 - Prob. 1SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - UNITS-OF-PRODUCTION METHOD The truck purchased in...Ch. 18 - Prob. 4SEACh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEACh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mitchell Parts...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mineral...Ch. 18 - INTANGIBLE LONG-TERM ASSETS Track Town Co. had the...Ch. 18 - Prob. 1SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE, AND...Ch. 18 - Prob. 3SEBCh. 18 - Prob. 4SEBCh. 18 - JOURNAL ENTRIES: DISPOSITION OF PLANT ASSETS...Ch. 18 - Prob. 6SEBCh. 18 - STRAIGHT-LINE, DECLINING-BALANCE,...Ch. 18 - UNITS-OF-PRODUCTION METHOD A machine is purchased...Ch. 18 - CALCULATING AND JOURNALIZING DEPRECIATION...Ch. 18 - IMPACT OF IMPROVEMENTS AND REPLACEMENTS ON THE...Ch. 18 - DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery...Ch. 18 - DEPLETION: CALCULATING AND JOURNALIZING Mining...Ch. 18 - Prob. 13SPBCh. 18 - Prob. 1MYWCh. 18 - Creative Solutions purchased a patent from Russell...Ch. 18 - On April 1, 20-3, Kwik Kopy Printing purchased a...Ch. 18 - Prob. 1CP
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