Parker Corporation reported the following related to property and equipment (all in millions): E: (Click the icon to view the property and equipment data.) Requirements provided in the problem statement. Abbreviation used: Accum. depr.= Accumulated Requirement 1. T-accounts for Property and Equipment and Accumulated Depreciation have been opened for you. Enter information as presented, and solve for the unknown in each account. (Enter amounts in millions depreciation.) Begin by posting to the Property and Equipment account. Property and equipment data Property and Equipment 12/31/19 Balance From the balance sheets: 12/31/20 12/31/19 Property and equipment $ 24,360 $ 22,840 Accumulated depreciation (17,230) (15,840) From the investing activities section of the 2020 cash flow statement: Cash used to purchase property and equipment $ (2,280) Proceeds from sale of property and equipment 62 Now post to the Accumulated Depreciation account Accumulated Depreciation From the 2020 income statement: Depreciation expense Gain or loss on the sale of equipment $ 1,710 ?? Requirement 2. Based on your calculations in Requirement 1, calculate the carrying amount of assets sold during 2020. What is the difference between the sales price and the carrying amount? (Enter amounts in millions a The carrying amount of assets sold during 2020 is million Print Done There is a of $ million. This results because Requirement 3. Prepare the journal entry for the sale of property and equipment during 2020. Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference you calculated in Requirement 2. Describe briefly. (Enter amounts in millions as provided in the problem statement. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the journal entry for the sale of property and equipment during 2020. Requirement 3. Prepare the journal entry for the sale of property and equipment during 2020. Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference you calculated in Requirement 2. Describe briefly. (Enter amounts in millions as provided in the problem statement. Record debits first, then credits. Exclude explanations from any journal entries.) Begin by preparing the journal entry for the sale of property and equipment during 2020 Journal Entry Date Accounts Debit Credit Describe the effect of this transaction on the financial statements. Compare the sales price and the carrying amount in the journal entry, and compare this to the difference calculated in Requirement 2; describe briefly. Assets liabilities and shareholders' equity Revenues expenses and net income The total carrying amount of $ million is $ million the sales price of $ million. calculation than/(as) in Requirement 2. Requirement 4. Prepare a T-account for Property and Equipment, Net. Repeat Requirement 1. (Enter amounts in millions as provided in the problem statement.) This is Property and Equipment, Net
