Question
Prepare the journal entries for the disposal of plant assets in each of the separate transactions. Brown Company purchased equipment in 2008 for $150,000 and
Prepare the journal entries for the disposal of plant assets in each of the separate transactions.
Brown Company purchased equipment in 2008 for $150,000 and estimated a $10,000 salvage value at the end of the equipment's 10-year useful life. At December 31, 2014, there was $98,000 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2015, the equipment was sold for $40,000.
Date | Account Titles | Ref. | Debit | Credit |
Finney Company sold a machine for $15,000. The machine originally cost $35,000 in 2012 and $8,000 was spent on a major overhaul in 2015 (charged to the Equipment account). Accumulated Depreciation on the machine to the date of disposal was $28,000.
Date | Account Titles | Ref. | Debit | Credit |
Stanley Company sold office equipment that had a book value of $12,000 for $16,000. The office equipment originally cost $40,000 and it is estimated that it would cost $50,000 to replace the office equipment.
Date | Account Titles | Ref. | Debit | Credit |
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