LESSON 18-4
Disposing of Plant Assets

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
SALE OF A PLANT ASSET FOR
BOOK VALUE

2
page 546

January 6, 20X6. Received cash from sale of display case, $250.00:
origi...
3
RECORDING A PLANT ASSET’S DEPRECIATION
EXPENSE FOR A PARTIAL YEAR

page 547

April 4, 20X7. Recorded a partial year’s de...
4

SALE OF A PLANT ASSET FOR MORE
THAN BOOK VALUE

page 548

April 4, 20X7. Received cash from sale of safe, $425.00: orig...
5

SALE OF A PLANT ASSET FOR LESS
THAN BOOK VALUE

page 549

October 6, 20X7. Received cash from sale of a computer, $150....
6

TERMS REVIEW

page 550

 gain on plant assets
 loss on plant assets

CENTURY 21 ACCOUNTING © 2009 South-Western, Ceng...
6

TERMS REVIEW

page 550

 gain on plant assets
 loss on plant assets

CENTURY 21 ACCOUNTING © 2009 South-Western, Ceng...
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Lesson 18 4

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Lesson 18 4

  1. 1. LESSON 18-4 Disposing of Plant Assets CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
  2. 2. SALE OF A PLANT ASSET FOR BOOK VALUE 2 page 546 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. 1 1. Record an entry in the cash receipts journal to remove the original cost. 2 2. Check the type of disposal, and write the date, and disposal amount in Section 2 of the plant asset record. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4
  3. 3. 3 RECORDING A PLANT ASSET’S DEPRECIATION EXPENSE 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 2 3 1. Debit the depreciation expense account. 2. Credit the accumulated depreciation account. 3. Update Section 3 of the plant asset record. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4
  4. 4. 4 SALE OF A PLANT ASSET FOR MORE THAN BOOK VALUE page 548 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. 1 1. Remove the original cost. Record the gain on the sale. Record the cash received from the sale. 2 2. Check the type of disposal. Write the date and disposal amount in Section 2 of the plant asset record. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4
  5. 5. 5 SALE OF A PLANT ASSET FOR LESS THAN BOOK VALUE page 549 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. 1 2 1. Remove the original cost. Record the loss on the sale. Record the cash received from the sale. 2. Check the type of disposal and write the date and disposal amount in Section 2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4
  6. 6. 6 TERMS REVIEW page 550  gain on plant assets  loss on plant assets CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4
  7. 7. 6 TERMS REVIEW page 550  gain on plant assets  loss on plant assets CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-4

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