Disposal of Property, Plant, and Equipment Lynch Company sold adelivery truck on April 1, 2013. Swann had acquired the truck onJanuary 1, 2009, for $37,350. At acquisition, Lynch had estimatedthat the truck would have an estimated life of 5 years and aresidual value of $5,850. At December 31, 2012, the truck had abook value of $12,150. Lynch uses the straight-line method.
1a. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $12,175: For compound entries, ifan amount box does not require an entry, leave it blank or enter"0".
Depreciation Depreciation Expense ??
Accumulated Expense? ??
Sales Cash 12175
Accumulated Expense ?????
Truck 37350
Gain on Disposal of Truck ?????
1b. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $9,125: For compound entries, if anamount box does not require an entry, leave it blank or enter"0".
Depreciation Depreciation Expense???
Accumulated Depreciation???
Sale Cash 9125
Accumulated Depreciation ???????
Loss on Disposal of Property, Plan, or Equip ?????
Truck 37350
Assume that Lynch uses IFRS and sold the truck for $12,175. Inaddition, Lynch had previously recorded a revaluation surplusrelated to this machine of $3,900. What journal entries arerequired to record the sale? For compound entries, if an amount boxdoes not require an entry, leave it blank or enter "0".
Depreciation Expense ????
Accumulated Depreciation ???
Cash ?????
Accumulated Depreciation???????
Truck 37350
Gain on Disposal of PP and E????
Revaluation Surplus 3900
Retained Earnings 3900
Disposal of Property, Plant, and Equipment Lynch Company sold adelivery truck on April 1, 2013. Swann had acquired the truck onJanuary 1, 2009, for $37,350. At acquisition, Lynch had estimatedthat the truck would have an estimated life of 5 years and aresidual value of $5,850. At December 31, 2012, the truck had abook value of $12,150. Lynch uses the straight-line method.
1a. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $12,175: For compound entries, ifan amount box does not require an entry, leave it blank or enter"0".
Depreciation Depreciation Expense ??
Accumulated Expense? ??
Sales Cash 12175
Accumulated Expense ?????
Truck 37350
Gain on Disposal of Truck ?????
1b. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $9,125: For compound entries, if anamount box does not require an entry, leave it blank or enter"0".
Depreciation Depreciation Expense???
Accumulated Depreciation???
Sale Cash 9125
Accumulated Depreciation ???????
Loss on Disposal of Property, Plan, or Equip ?????
Truck 37350
Assume that Lynch uses IFRS and sold the truck for $12,175. Inaddition, Lynch had previously recorded a revaluation surplusrelated to this machine of $3,900. What journal entries arerequired to record the sale? For compound entries, if an amount boxdoes not require an entry, leave it blank or enter "0".
Depreciation Expense ????
Accumulated Depreciation ???
Cash ?????
Accumulated Depreciation???????
Truck 37350
Gain on Disposal of PP and E????
Revaluation Surplus 3900
Retained Earnings 3900
Related questions
New lithographic equipment, acquired at a cost of $875,000 atthe beginning of a fiscal year, has an estimated useful life offive years and an estimated residual value of $75,300. The managerrequested information regarding the effect of alternative methodson the amount of depreciation expense each year. On the basis ofthe data presented to the manager, the double-declining-balancemethod was selected.
In the first week of the fifth year, the equipment was sold for$128,100.
1. Determine the annual depreciation expensefor each of the estimated five years of use, the accumulateddepreciation at the end of each year, and the book value of theequipment at the end of each year by the following methods:
a. Straight-line method
Year | Depreciation Expense | Accumulated Depreciation End of Year | Book Value End of Year |
1 ________________ ______________________ _____________________________
2 ________________ ______________________ _____________________________
3 ________________ ______________________ _____________________________
4 ________________ ______________________ _____________________________
5 ________________ ______________________ ____________________________
b. Double-declining-balance method
Year | Depreciation Expense | Accumulated Depreciation End of Year | Book Value End of Year |
1 ________________ ______________________ _____________________________
2 ________________ ______________________ _____________________________
3 ________________ ______________________ _____________________________
4 ________________ ______________________ _____________________________
5 ________________ ______________________ ____________________________
2. Journalize the entry to record the sale, assumingdouble-declining balance method is used. If an amount box does notrequire an entry, leave it blank.
Cash __________ _______________
Accumulated Depreciation __________ _______________
Equipment __________ _______________
Gain On sale of equipment __________ _______________
3. Journalize the entry to record the sale, assuming that theequipment was sold for $110,000 instead of $128,100. If an amountbox does not require an entry, leave it blank.
Cash __________ _______________
Accumulated Depreciation __________ _______________
loss On sale of equipment __________ _______________
Equipment __________ _______________
Available-for-Sale Securities
At the beginning of 2013, Ace Company had the followingportfolio of investments in available-for-sale securities (commonstock):
| Security | Cost | 12/31/12 Fair Value |
| A | $24,300 | $28,800 |
| B | 28,400 | 27,300 |
| Totals | $52,700 | $56,100 |
During 2013 the following transactions occurred:
| May 3 | Purchased C securities (commonstock) for $11,300. |
| July 16 | Sold all of the A securities for$28,800. |
| Dec. 31 | Received dividends of $700 on the Band C securities, for which the following information wasavailable: |
| 12/31/13 Fair Value | |
| B | $30,400 |
| C | 14,200 |
1. Prepare journal entries to record the preceding information.For compound entries, if an amount box does not require an entry,leave it blank.
| 2013 | investments in available for sale securities | $????? | |
| May 3 | cash | $????? | |
| July 16 | cash | $????? | |
| sale | investments in available for sale securities | $????? | |
| gain on sale of available for sale securities | $????? | ||
| July 16 | unrealized holding gain/loss: available for salesecurities | $????? | |
| adj | allowance for change in fair value of investment | $????? | |
| Dec 31 | cash | $????? | |
| divd | dividend income | $????? | |
| Dec 31 | allowance for change in fair value of investment | $????? | |
| adj | unrealized holding gain/loss: available for salesecurities | $????? |
2. What is the balance in the Unrealized Holding Gain/Lossaccount on December 31, 2013?
$??????
