Activity 2.16: Dispose of an asset during the financial year On 30 April 20.6, these balances appeared in the Pre-adjustment Trial Balance of Games Unlimited: • Vehicles R334 000 Equipment . Accumulated depreciation: Vehicles . Accumulated depreciation: Equipment Drew up these General Ledger accounts and balance (or close) them on R84 000 R99 000 R41 500 30 April 20.6: Vehicles; Accumulated depreciation: Vehicles; Equipment; Accumulated depreciation: Equipment; Depreciation and Asset disposal. 2 Prepare the Tangible asset note to the financial statements on 30 April 20.6. Additional information and adjustments • On 1 August 20.5, equipment (cost price R6 000; accumulated depreciation on 1 May 20.5, R4 400) was sold for R800 on account. No entries were made. • On 1 February 20.6, a vehicle was bought for R104 000. This was recorded. Depreciation on all is calculated at: Vehicles at 25% p.a. on the diminishing balance method. - Equipment at 15% p.a. on to the straight-line method. -

Activity 2.16: Dispose of an asset during the financial year On 30 April 20.6, these balances appeared in the Pre-adjustment Trial Balance of Games Unlimited: • Vehicles R334 000 Equipment . Accumulated depreciation: Vehicles . Accumulated depreciation: Equipment Drew up these General Ledger accounts and balance (or close) them on R84 000 R99 000 R41 500 30 April 20.6: Vehicles; Accumulated depreciation: Vehicles; Equipment; Accumulated depreciation: Equipment; Depreciation and Asset disposal. 2 Prepare the Tangible asset note to the financial statements on 30 April 20.6. Additional information and adjustments • On 1 August 20.5, equipment (cost price R6 000; accumulated depreciation on 1 May 20.5, R4 400) was sold for R800 on account. No entries were made. • On 1 February 20.6, a vehicle was bought for R104 000. This was recorded. Depreciation on all is calculated at: Vehicles at 25% p.a. on the diminishing balance method. - Equipment at 15% p.a. on to the straight-line method. -

Name: Activity 2.16; Dispose of an asset during the financial yearOn 30 Apr
Uploaded: 2024-03-05T11:50:36.000Z
Channel: Bartleby
Description: Activity 2.16; Dispose of an asset during the financial yearOn 30 April 20.6, these balances appeared in the Pre-adjustment Trial Balanceof Games Unlimited:• VehiclesR334 000EquipmentAccumulated depreciation: Vehicles• Accumulated depreciation: Equi

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 11SPB: DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery Co. had the following plant asset transactions...

See similar textbooks

Similar questions

Using the following information: A. make the December 31 adjusting journal entry for depreciation B. determine the net book value (NBV) of the asset on December 31 Cost of asset, $250,000 Accumulated depreciation, beginning of year, $80,000 Current year depreciation, $25,000
Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
Use the information in Problem A-1 to solve this problem. Required Prepare a schedule of depreciation using the double-declining-balance method. PROBLEM A-1 A delivery van was bought for 18,000. The estimated life of the van is four years. The trade-in value at the end of four years is estimated to be 2,000. Check Figure Year 2 depreciation, 4,500
Disposal of an Operating Asset Jolie Company owns equipment with a cost of $85,500 and accumulated depreciation of 76,200. Required: Prepare the journal entry to record the disposal of the equipment on April 9 assuming: 1. Jolie sold the equipment for $11,200 cash. 2. Jolie sold the equipment for $7,900 cash.
DISPOSITION OF ASSETS: JOURNALIZING Mayer Delivery Co. had the following plant asset transactions during the year: 1. Assets discarded or sold: Jan. 1 Van #11, which had a cost of 8,800 and accumulated depreciation of 8,800, was discarded. 8 Van #7, which had a cost of 9,400 and accumulated depreciation of 9,000, was sold for 200. 14 Van #13, which had a cost of 7,600 and accumulated depreciation of 7,400, was sold for 250. 2. Assets exchanged or traded in: Feb. 1 Van #8, which had a cost of 11,000 and accumulated depreciation of 8,800, was traded in for a new van (#20) with a fair market value of 13,000. The old van and 10,500 in cash were given for the new van. 9 Van #3, which had a cost of 7,500 and accumulated depreciation of 7,000, was traded in for a new van (#21) with a fair market value of 9,500. The old van and 9,200 in cash were given for the new van. REQUIRED Prepare general journal entries for the transactions.
QUESTION TWO The following information relating to property plant and equipment was extracted fromthe accounting records of Fred’s Transport for year ended 28 February 2022;1. Balances at 28 February 2021:- Equipment at cost R 56 000- Accumulated depreciation: equipment R 10 860- Vehicles at cost R560 000- Accumulated depreciation: vehicles R285 360 2. The following transactions in respect of property, plant and equipment took placeduring the current financial year:2.1 An old vehicle was sold on 31 August 2021 for R144 000 cash. The cost priceof the vehicle sold was R240 000, and its accumulated depreciation amountedto R120 100 on 1 March 2021. The proceeds from the sale of the vehicle wasused to partially finance the purchase of another vehicle for R440 000 boughton 1 September 2021.2.2 On 28 February 2022 sold used equipment for R14 400 cash. The accumulateddepreciation on this equipment was R3 280 at 1 March 2021. The cost price ofthe equipment was R18 000.3. Depreciation must still…
REQUIRED: A. Based on the application of the necessary procedures and appreciation of the above data, you are to provide the answers to the following: 1. What is the gain on sale of truck on September 30? 2. What is the gain on sale of machinery on December 20? 3. What is the adjusted balance of the cost of property, plant and equipment as of December 31, 2022? 4. What is the total depreciation expense for the year ended December 31, 2022? 5. What is the carrying amount of the property, plant and equipment as of December 31, 2022? B. Show the lapsing schedule as of December 31, 2022.
1. The adjusting entry to correct the entry made on trade-in of Machine 3 will include aa. Debit to Accumulated Depreciation P67,500b. Debit to Loss on Exchange P58,500c. Credit to Production Machine P67,500d. Credit to Cash P192,000 2. The total depreciation for the year ended December 31, 2020 isa. P237,000 c. P233,250b. P232,500 d. P236,250 3. The carrying amount of production machine as of December 31, 2020 isa. P1,024,500 c. P1,069,500b. P1,029,000 d. P 990,750