Disposition of Assets: Journalizing

Required:

1. Prepare general journal entries for the transactions. If an amount box does not require an entry, leave it blank.

Mitchell Parts Co. had the following plant asset transactions during the year: 1. Assets discarded or sold:

Jan. 1	Motor #12, which had a cost of $2,540 and accumulated depreciation of $2,540, was discarded.
8	Motor #8, which had a cost of $4,470 and accumulated depreciation of $3,980, was sold for $270.
14	Motor #16, which had a cost of $5,750 and accumulated depreciation of $5,500, was sold for $540.

2. Assets exchanged or traded in:

Feb. 1

Motor #6, which had a cost of $6,050 and accumulated depreciation of $4,880, was traded in for a new motor (#22) with a fair market value of $7,040. The old motor and $5,710 in cash were given for the new motor.

9

Motor #9, which had a cost of $5,620 and accumulated depreciation of $5,080, was traded in for a new motor (#23) with a fair market value of $6,470. The old motor and $6,130 in cash were given for the new motor.1. Prepare general journal entries for the transactions. If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	20-- Jan. 1						1
2							2
3							3
4	Jan. 8						4
5							5
6							6
7							7
8							8
9	Jan. 14						9
10							10
11							11
12							12
13							13
14	Feb. 1						14
15							15
16							16
17							17
18							18
19							19
20	Feb. 9						20
21							21
22							22
23							23
24							24