SALE OF A PLANT ASSET FOR BOOK VALUE

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Presentation transcript:

SALE OF A PLANT ASSET FOR BOOK VALUE 1 2 1. Remove the original cost of the plant asset and its related accumulated depreciation. Record the cash received. 2. Complete Section 2 of the plant asset record. Lesson 21-4, page 557

RECORDING A PLANT ASSET'S DEPRECIATION EXPENSE FOR A PARTIAL YEAR 1 2 3 1. Debit the depreciation expense account. 2. Credit the accumulated depreciation account. 3. Update Section 3 of the plant asset record. Lesson 21-4, page 558

SALE OF A PLANT ASSET FOR MORE THAN BOOK VALUE 1 2 1. Record an entry to remove asset, record gain, and record cash. 2. Complete Section 2 of the plant asset record. Lesson 21-4, page 559

SALE OF A PLANT ASSET FOR LESS THAN BOOK VALUE 1 2 1. Record an entry to dispose of the asset, record a loss on plant assets, and record cash. 2. Compete Section 2 of the plant asset record. Lesson 21-4, page 560

TERMS REVIEW gain on plant assets loss on plant assets Lesson 21-4, page 561