Part 1:

Assume that one of the fixed assets listed in Apples balance sheet will be disposed of. Please provide the journal entry for the disposition of that asset. (You may have to look in the notes to the financial statements to see what the amount of accumulated depreciation is.) Next, assume that the company will sell the fixed asset for a gain of $20,000. Please provide the journal entry for the sale of that asset at a $20,000 gain.

Part 2:

There are times when the cost of the fixed assets of the business are exactly equal to the amount in the related accumulated depreciation account. Please let us know when an entry should be made to remove the cost and the accumulated depreciation from the accounts. Also, let us know if it is permissible to record additional depreciation on the assets if they are still useful to the business. Please let us know why or why not.

apples annual report

Apple Inc. CONSOLIDATED BALANCE SHEETS (in millions, except number of shares which are retected in thousands and par value) September 30, September 24, $ ASSETS: Current assets Cash and cash equivalents Short-term marketable securities Accounts receivable, less alowances of $58 and $53, respectively Inventories Vendor non-trade receivables Other current assets Total current assets 20,289 53,892 17,874 4,855 17.799 13936 128.645 20.484 46,671 15.754 2,132 13 545 8.283 106.869 Long-term marketable securities Property, plant and equipment, net Goodwill Acquired intangible assets, net Other non-current assets Total assets 194.714 33.783 5.717 2.298 10.162 375.319 S 170.430 27.010 5.414 3.205 8,757 321.686 LIABILITIES AND SHAREHOLDERS' EQUITY: S Current liabilities: Accounts payable Accrued expenses Deferred revenue Commercial paper Current portion of long-term debt Total current liabilities 49,049 25.744 7.548 11.977 6.496 100,814 37.294 22.027 8.080 8.105 3.500 79,006 Deferred revenue, non-current Long-term debt Other non-current liabilities Total liabilities 2.836 97,207 40.415 241,272 2.930 75.427 36 074 193.437 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized: 5,126,201 and 5,336,166 shares issued and outstanding respectively Retained earnings Accumulated other comprehensive income floss) Total shareholders' equity Total liabilities and shareholders' equity 35,867 98.330 (150) 134,047 375.319 31.251 96,364 634 128,249 321.686 See accompanying Notes to Consolidated Financial Statements. Apple Inc. I 2017 Form 10-K 141