Journal Entries: Disposition of Plant Assets

1. Discarding an asset.

1. On January 4, shelving units, which had a cost of $6,010 and had accumulated depreciation of $5,560, were discarded.
2. On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,230, was sold for $200.
3. On October 1, a copy machine, which had a cost of $6,860 and had accumulated depreciation of $6,410, was sold for $500.

If an amount box does not require an entry, leave it blank.

Prepare the entries for the transactions using a general journal.

2. Exchange or trade-in of assets.

1. On December 31, a drill press, which had a cost of $59,430 and had accumulated depreciation of $46,750, was traded in for a new drill press with a fair market value of $74,000. The old drill press and $62,850 in cash were given for the new drill press.
2. On December 31, the old drill press in (a) and $58,500 in cash were given for the new drill press.

If an amount box does not require an entry, leave it blank.

Prepare the entries for the transactions using a general journal.

1. Discarding an asset.

1. On January 4, shelving units, which had a cost of $6,010 and had accumulated depreciation of $5,560, were discarded.
2. On June 15, a hand cart, which had a cost of $1,430 and had accumulated depreciation of $1,230, was sold for $200.
3. On October 1, a copy machine, which had a cost of $6,860 and had accumulated depreciation of $6,410, was sold for $500.

If an amount box does not require an entry, leave it blank.

Prepare the entries for the transactions using a general journal.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	(a)						1
2							2
3							3
4							4
5	(b)						5
6							6
7							7
8							8
9	(c)						9
10							10
11							11
12							12

2. Exchange or trade-in of assets.

1. On December 31, a drill press, which had a cost of $59,430 and had accumulated depreciation of $46,750, was traded in for a new drill press with a fair market value of $74,000. The old drill press and $62,850 in cash were given for the new drill press.
2. On December 31, the old drill press in (a) and $58,500 in cash were given for the new drill press.

If an amount box does not require an entry, leave it blank.

Prepare the entries for the transactions using a general journal.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	(a)						1
2							2
3							3
4							4
5							5
6							6
7	(b)						7
8							8
9							9
10							10
11							11