Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Discarding an asset. a. On January 4, shelving units, which had a cost of $6,650 and had accumulated depreciation of $6,270, were discarded. b.
1. Discarding an asset. a. On January 4, shelving units, which had a cost of $6,650 and had accumulated depreciation of $6,270, were discarded. b. On June 15, a hand cart, which had a cost of $1,410 and had accumulated depreciation of $1,240, was sold for $170. c. On October 1, a copy machine, which had a cost of 57,200 and had accumulated depreciation of $6,850, was sold for $390. Page: 1 DATE ACCOUNT TITLE DOC. POST. NO REF DEBIT CREDIT 1 20 Accumulated Depreciation-Shelves Loss on Discarded Shelves Shelves 5 June 15 Casil Accumulated Depreciation-Hand Cart Hand Cart III III bill III III III. 9 Oct. 1 Cash Accumulated Depreciation Copy Machine Copy Machine Gain on Sale of Copy Machine Check My Work when you sell, dispose of, or exchange an asset, the cost and accumulated depreciation must be removed from the books. A gain or loss should be recognized when the market value is greater than or less than the book value of the asset 2. Exchange or trade-in of assets. a. On December 31, a drill press, which had a cost of $56,130 and had accumulated depreciation of $46,080, was traded in for a new drill press with a fair market value of $74,560. The old drill press and $64,830 in cash were given for the new drill press. b. On December 31, the old drill press in (a) and $59,460 in cash were given for the new drill press. Page: 1 DOC. POST. DATE ACCOUNT TITLE NO. REF. CREDIT DCBIT 20. Drill Press (new) Accumulated Depreciation-Drill Press (old) Loss on Exchange of Drill Press Drill Press (old) Cash 1 Dec 31 IIII IIIIII 7 31 Drill Press (new) Acumulated Depreciation-Drill Press (old) Drill Press (old) Cash Gain on Exchange of Drill Press
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started