During the current year, Matrix Homes disposed of plant assets in the following transactions: February 10 Office equipment costing $16,000 was given to a scrap dealer. No proceeds were received from the scrap dealer. At the date of disposal, accumulated depreciation on the office equipment amounted to $14,800. April 1 Matrix sold land and a building to Shalimar Group for $725,000, receiving $225,000 in cash and a 5-year, 11% note receivable for $500,000. Matrix accounting records showed the following amounts: Land $110,000, Building $360,000, Accumulated depreciation Building (as of April 1), $112,000. August 15 Matrix traded in an old Car for a new one. The old Car had cost $12,000 and accumulated depreciation amounted to $8,000. The list price of the new Car was $18,000. Matrix received a $4,500 trade-in-allowance for the old Car and paid the $11,000 balance in cash. Matrix traded in its old laptop as part of the purchase of a new system. The old laptop had cost $155,000 and, as of October 1, accumulated depreciation amounted to $115,000. The new laptop had a list price of $85,000. Matrix was granted a $12,000 trade-in allowance for the old laptop, paid $28,000 in cash, and issued a $52,000 2-year, 8% note payable to Action computers for the balance. Instructions: Prepare journal entries to record each of these transactions. Assume that depreciation expense on each asset already has been recorded up to the date of disposal. Thus you need not update the accumulated depreciation figures stated in the problem
During the current year, Matrix Homes disposed of plant assets in the following transactions:
February 10 Office equipment costing $16,000 was given to a scrap dealer. No proceeds were received from the scrap dealer. At the date of disposal,
April 1 Matrix sold land and a building to Shalimar Group for $725,000, receiving $225,000 in cash and a 5-year, 11% note receivable for $500,000. Matrix accounting records showed the following amounts: Land $110,000, Building $360,000, Accumulated depreciation Building (as of April 1), $112,000.
August 15 Matrix traded in an old Car for a new one. The old Car had cost $12,000 and accumulated depreciation amounted to $8,000. The list price of the new Car was $18,000. Matrix received a $4,500 trade-in-allowance for the old Car and paid the $11,000 balance in cash.
Matrix traded in its old laptop as part of the purchase of a new system. The old laptop had cost $155,000 and, as of October 1, accumulated depreciation amounted to $115,000. The new laptop had a list price of $85,000. Matrix was granted a $12,000 trade-in allowance for the old laptop, paid $28,000 in cash, and issued a $52,000 2-year, 8% note payable to Action computers for the balance.
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