century 21 accounting © 2009 south-western, cengage learning lesson 18-4 disposing of plant assets
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4LESSON 18-4
Disposing of Plant Assets
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 18-4
SALE OF A PLANT ASSET FOR SALE OF A PLANT ASSET FOR BOOK VALUEBOOK VALUE
1. Record an entry in the cash receipts journal to remove the original cost.
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January 6, 20X6. Received cash from sale of display case, $250.00: original cost, $3,250.00; total accumulated depreciation through December 31, 20X5, $3,000.00. Receipt No. 4.
2. Check the type of disposal, and write the date, and disposal amount in Section 2 of the plant asset record.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 18-4
RECORDING A PLANT ASSET’S DEPRECIATION RECORDING A PLANT ASSET’S DEPRECIATION EXPENSE FOR A PARTIAL YEAREXPENSE FOR A PARTIAL YEAR page 547
April 4, 20X7. Recorded a partial year’s depreciation on a safe to be sold, $60.00. Memorandum No. 31.
1. Debit the depreciation expense account.
2. Credit the accumulated depreciation account.
3. Update Section 3 of the plant asset record.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 18-4
SALE OF A PLANT ASSET FOR MORE SALE OF A PLANT ASSET FOR MORE THAN BOOK VALUETHAN BOOK VALUE
1. Remove the original cost. Record the gain on the sale. Record the cash received from the sale.
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April 4, 20X7. Received cash from sale of safe, $425.00: original cost, $1,800.00; accumulated depreciation through April 4, 20X7, $1,500.00. Receipt No. 47.
2. Check the type of disposal. Write the date and disposal amount in Section 2 of the plant asset record.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 18-4
1. Remove the original cost. Record the loss on the sale. Record the cash received from the sale.
SALE OF A PLANT ASSET FOR LESS SALE OF A PLANT ASSET FOR LESS THAN BOOK VALUETHAN BOOK VALUE
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October 6, 20X7. Received cash from sale of a computer, $150.00: original cost, $1,900.00; total accumulated depreciation through October 1, 20X7, $1,500.00. Receipt No. 281.
2. Check the type of disposal and write the date and disposal amount in Section 2.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 18-4
TERMS REVIEWTERMS REVIEW
gain on plant assets loss on plant assets
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