Business
Engineering
Math
Science
Social Science
Cornerstones of Financial Accounti...
Solutions
Cornerstones of Financial Accounti...
Disposal of Fixed Asset
Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:
The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation.
Required:
1. Prepare the journal entry to record depreciation expense for 2019.
2. Compute accumulated depreciation at December 31, 2019.
3. Prepare the journal entry to record the sale of the machine.
4. CONCEPTUAL CONNECTION Explain how the disposal of the fixed asset would affect the 2019 financial statements. Ignore income taxes.
Concept introduction:
Straight-line Depreciation:
Depreciation is the process in which the cost of the fixed assets other than land is allocated to expense over the useful life of the asset. The most commonly used method of depreciation is straight line method. In this method every year until the asset’s useful life an equal amount of an assets cost to depreciation expense is allocated. The formula to calculate straight line depreciation is:
Straight line depreciation = (cost − residual value) / expected useful life
Requirement 1:
Prepare journal entry to record depreciation expense for 2019.
First we have to determine the depreciation expense for 2019 and to calculate the expense let’s use the following formula:
Straight line depreciation = (cost − residual value) / expected useful li...
Concept introduction:
Straight-line Depreciation:
Depreciation is the process in which the cost of the fixed assets other than land is allocated to expense over the useful life of the asset. The most commonly used method of depreciation is straight line method. In this method every year until the asset’s useful life an equal amount of an assets cost to depreciation expense is allocated. The formula to calculate straight line depreciation is:
Straight line depreciation = (cost − residual value) / expected useful life
Requirement 2:
To explain:
Compute accumulated depreciation at Dec 31 2019.
Concept introduction:
Disposal of fixed assets:
Fixed assets are disposed by a company either voluntarily or involuntarily. Voluntary disposal occurs when the useful life of the asset is over or due to technological obsolescence. Involuntary disposal occurs due to damage from fire, theft or natural calamities.
Requirement 3:
To explain:
Prepare the journal entry to record the sale of the machine.
Chapter 7 Solutions
Additional Business Solutions
Find more solutions based on key concepts
Show solutions addHow do the seven control plans (five present, two missing) listed in Figure 9.6 (p. 333) work?
Accounting Information Systems
Income statement FedEx Corporation had the following revenue and expense account balances (in millions) for a r...
Financial & Managerial Accounting
Compare Comcast, Alphabet, and Wal-Mart The following table shows the sales and average book value of fixed ass...
Corporate Financial Accounting
A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not effi...
Principles of Economics (MindTap Course List)
One of the best ways to understand interview dynamics and to develop confidence is to role-play the parts of in...
Essentials of Business Communication (MindTap Course List)
Consider two policiesa tax cut that will last for only one year and a tax cut that is expected to be permanent....
Principles of Macroeconomics (MindTap Course List)
(The Short-Run Firm Supply Curve) Use the following data to answer the questions below: Q VC MC AVC 1 $10 ____ ...
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
REQUIRED LUMP SUM PAYMENT Starting next year, you will need 5,000 annually for 4 years to complete your educati...
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
The money supply includes all of the following EXCEPT a. metal coins. b. paper currency. c. lines of credit acc...
Brief Principles of Macroeconomics (MindTap Course List)
FV OF UNEVEN CASH FLOW You want to buy a house within 3 years, and you are currently saving for the down paymen...
Fundamentals of Financial Management (MindTap Course List)
Return to the credit card scenario of Exercise 12 (Section 2.2), and let C be the event that the selected stude...
Probability and Statistics for Engineering and the Sciences
What reasons are generally given for imposing trade restrictions?
Foundations of Business (MindTap Course List)
Every year, the U.S. Coast Guard collects data and compiles statistics on reported recreational boating acciden...
STATISTICS F/BUSINESS+ECONOMICS-TEXT
If a firms ROE is low and management wants to improve it, explain how using more debt might help.
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
In an hour, Mateo can wash 2 cars or mow 1 lawn, and Tyler can wash 3 cars or mow 1 lawn. Who has the absolute ...
Principles of Microeconomics (MindTap Course List)
Periodic inventory by three methods Dymac Appliances uses the periodic inventory system. Details regarding the ...
Financial And Managerial Accounting
For all trips located in Connecticut (CT), increase the maximum group size by two. Update the PADDLING table ac...
A Guide to SQL
Explain how the entity relationship (ER) model helped produce a more structured relational database design envi...
Database Systems: Design, Implementation, & Management
NCEI is responsible for hosting and providing access to one of the most significant archives on Earth, with com...
Fundamentals of Information Systems
The specific business needs and goals of the organization define the method of transaction processing best suit...
Principles of Information Systems (MindTap Course List)
The hosted software model for enterprise software helps customers acquire, use, and benefit from new technology...
Fundamentals of Information Systems
What is a monitoring (or SPAN) port? What is it used for?
Principles of Information Security (MindTap Course List)
Create a Crows Foot ERD to include the following business rules for the ProdCo company: a. Each sales represent...
Database Systems: Design, Implementation, & Management
Technician A uses a 30-degree stone for topping a 45-degree valve seat. Technician B uses a 60-degree stone to ...
Automotive Technology: A Systems Approach (MindTap Course List)
For Problems 16.44 through 16.48, discuss how you would create the solid model of the given objects. See Exampl...
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
______ are the primary device type used by people around the world to communicate, go online, and access and sh...
Principles of Information Systems (MindTap Course List)
Redo Problem 2.7 according to the USDA system (Table 2.3). 2.7 The particle characteristics of a soil are given...
Fundamentals of Geotechnical Engineering (MindTap Course List)
A reinforced concrete T-beam (see figure) is acted on by a positive bending moment of M = 175 kip-ft. Steel rei...
Mechanics of Materials (MindTap Course List)
List three safety precautions to be observed when using a hacksaw.
Precision Machining Technology (MindTap Course List)
Should the IT director report to the company president, or somewhere else? Does it matter?
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
List and describe the criteria used to determine whether an actual incident! occurring.
Management Of Information Security
The 90-kg man, whose center of gravity is at G, is climbing a uniform ladder. The length of the ladder is 5 m, ...
International Edition---engineering Mechanics: Statics, 4th Edition
Arc-fault damage is closely related to the value of _____
EBK ELECTRICAL WIRING RESIDENTIAL
Find the expansion work resulting when the volume of a gas increases from 1 ft3 to 5 ft3 against a constant pre...
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
Repeat Problem 2.11 with the following data. 2.11 The grain-size characteristics of a soil are given in the fol...
Principles of Geotechnical Engineering (MindTap Course List)
Explain in detail the purpose of a time-delay, low-voltage release relay assembly installed in a motor control ...
Electric Motor Control
Describe how your community manages its organic waste.
Solid Waste Engineering
A bracket plate of A36 steel is welded to a W1250 of A992 steel. Use E70 electrodes and determine the required ...
Steel Design (Activate Learning with these NEW titles from Engineering!)
Technician A always speaks to customers with his arms folded across his chest because he does not know what els...
Automotive Technology
bus width a. small, high-speed storage locations contained in a processor b. component of the computer that dir...
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Which Transport layer protocol does PPTP use?
Network+ Guide to Networks (MindTap Course List)
