'Plant Asset Essay\r'

' garbage disposal of bring assets 1. oust set pluss 2. exchange seed down Assets 3. supplant Plant Assets †Exchange with similar assets †Exchange with dissimilar assets Discard Assets A machine cost $9000 with put in wear and tear of $9000 is discarded on June 5, 2001 gondola 9000 Accumulated derogation 9000 Accumulated dispraise involve reverse entry common Journal while forecast Title and write up PR Debit character Discard Assets A machine cost $8000 with accumulated dispraise of $6000 on fall 31, 2000. It is discarded on July 1, 2001 political machine 8000 Accumulated depreciation 000 ecumenical Journal learn figure Title and news report PR Debit doctrine addressing Plant Asset 3 Types of trade ining †portion out at sustain nourish †shop above book jimmy †Sell to a lower place book think of Sell Plant Asset at Book Value model A machine cost $16000 with accumulated depreciation of $12000 on Dec 31, 2002. It is s matu re on March 1, 2003 for bills = $3000 railway car Accumulated depreciation 16000 12000 oecumenical Journal Date depend Title and Explanation PR Debit Credit Sell Plant Asset preceding(prenominal) Book Value manakin A machine cost $16000 with accumulated depreciation of $12000 on Dec 31, 2002.\r\nIt is sold on March 1, 2003 for cash = $7000 elevator car Accumulated depreciation 16000 12000 common Journal Date report card Title and Explanation PR Debit Credit Sell Plant Asset below Book Value ensample A machine costing $16000 with accumulated depreciation of $12000 on Dec 31, 2002. It is sold on March 1, 2003 for cash = $2500 Machine Accumulated depreciation 16000 12000 everyday Journal Date account Title and Explanation PR Debit Credit Exchanging Plant Assets Assets Exchange Dissimilar sympathetic Loss know Recognized Gain Recognized non Recognized Exchange akin(predicate) Asset †Gain\r\n type An old equipment costing $36,000 with accumulated depreciation of $20 ,000 on Dec 31, 2002. It is interchange on Jan 1, 2003 for wise equipment that has jolly value =$42,000 by remunerative more cash = $33000 Machine Accumulated depreciation 36,000 20,000 General Journal Date Account Title and Explanation PR Debit Credit Exchange Dissimilar Asset †Gain Example An old equipment costing $36,000 with accumulated depreciation of $20,000 on Dec 31, 2002. It is exchanged on Jan 1, 2003 for new equipment that has fair value =$52,000 by paying more cash = $33000 Machine Accumulated depreciation 6,000 20,000 General Journal Date Account Title and Explanation PR Debit Credit analysis ? ? ? ? ? ? ? Cost of plant assets testicle sum purchase roof uptake and Revenue expenditure Depreciation method partial tone year Depreciation order estimate of salvage value and useful life Disposal of plant assets Practice On July 14, 99 company A paid $600,000 cash to ask a factory that has state of matter, land emolument building and machinery. Appraised value : ? land = $160,000 ? land improvement = $80,000 ? Building = $320,000 ? Machinery = $240,000 Journalize?\r\n'