1. LESSON 18-4 Disposing of Plant Assets
5/25/2018
LESSON 18-4
Disposing of Plant Assets

2. SALE OF A PLANT ASSET FOR BOOK VALUE
page 546
January 6, 20X6. Received cash from sale of display case, $250.00: original cost, $3,250.00; total accumulated depreciation through December 31, 20X5, $3, Receipt No. 4. 1 2
1. Record an entry in the cash receipts journal to remove the original cost.
2. Check the type of disposal, and write the date, and disposal amount in Section 2 of the plant asset record.
LESSON 18-4

3. RECORDING A PLANT ASSET’S DEPRECIATION EXPENSE FOR A PARTIAL YEAR
page 547
April 4, 20X7. Recorded a partial year’s depreciation on a safe to be sold, $ Memorandum No. 31. 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 18-4

4. SALE OF A PLANT ASSET FOR MORE THAN BOOK VALUE
page 548
April 4, 20X7. Received cash from sale of safe, $425.00: original cost, $1,800.00; accumulated depreciation through April 4, 20X7, $1, Receipt No. 47. 1
1. Remove the original cost. Record the gain on the sale. Record the cash received from the sale. 2
2. Check the type of disposal. Write the date and disposal amount in Section 2 of the plant asset record.
LESSON 18-4

5. SALE OF A PLANT ASSET FOR LESS THAN BOOK VALUE
page 549
October 6, 20X7. Received cash from sale of a computer, $150.00: original cost, $1,900.00; total accumulated depreciation through October 1, 20X7, $1, Receipt No. 281. 1 2
1. Remove the original cost. Record the loss on the sale. Record the cash received from the sale.
2. Check the type of disposal and write the date and disposal amount in Section 2.
LESSON 18-4

6. TERMS REVIEW gain on plant assets loss on plant assets page 550
LESSON 18-4