LESSON 8-3 Disposing of Plant Assets

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Presentation transcript:

LESSON 8-3 Disposing of Plant Assets 4/26/2017 LESSON 8-3 Disposing of Plant Assets RED

DISCARDING A PLANT ASSET WITH NO BOOK VALUE page 235 January 5, 20X6. Discarded storage cabinet: original cost, $275.00; total accumulated depreciation through December 31, 20X5, $275.00. Memorandum No. 72. 1. Record entry to remove plant asset from accounts. 1 2. Write the date, amount, and type of disposal. 2 LESSON 8-3

DISCARDING A PLANT ASSET WITH A BOOK VALUE page 236 June 30, 20X6. Discarded office table: original cost, $200.00; total accumulated depreciation through December 31, 20X5, $140.00; additional depreciation to be recorded through June 30, 20X6, $20.00. Memorandum No. 92. 1. Record a partial year’s depreciation expense. 1 2. Record the partial year’s depreciation. 4 3. Write the date, amount, and type of disposal. 3 4. Record entry to remove plant asset from accounts. 2 LESSON 8-3

LESSON 8-3 4/26/2017 SELLING A PLANT ASSET page 267 January 4, 20X6. Received cash from sale of fax machine, $185.00: original cost, $600.00; total accumulated depreciation through December 31, 20X5, $400.00. Receipt No. 60. 3 1 2 1. Compute the gain or loss on the sale. 2. Write the date, amount, and type of disposal. 3. Record entry to remove plant asset from accounts. LESSON 8-3 RED

LESSON 8-3 4/26/2017 TRADING A PLANT ASSET page 238 June 27, 20X6. Paid cash, $850.00, plus old counter for new store counter: original cost of old counter, $1,000.00; total accumulated depreciation through June 27, 20X6, $765.00. Memorandum No. 130 and Check No. 154. 1. Compute the original cost of the new plant asset. 4 1 2. Write the date and type of disposal and the disposal amount. 2 3 3. Complete section 1 for the new plant asset. 4. Record entry to remove old plant asset and add new plant asset. LESSON 8-3 RED

SELLING LAND AND BUILDINGS LESSON 8-3 4/26/2017 SELLING LAND AND BUILDINGS page 239 January 2, 20X6. Fidelity Company sold land with a building for $97,000.00 cash; original cost of land, $25,000.00; original cost of building, $150,000.00; total accumulated depreciation on building through December 31, 20X5, $85,000.00. Receipt No. 105. 1. Compute the gain on sale of plant assets. 2. Write the date, type, and amount of disposal. 2 3. Record entry to remove plant assets from accounts. 3 1 LESSON 8-3 RED

CALCULATING THE GAIN ON SALE OF LAND AND BUILDINGS page 240 LESSON 8-3