Disposition of Assets Journalizing 1 Prepare general journal

Disposition of Assets: Journalizing

1. Prepare general journal entries for the transactions. If an amount box does not require an entry, leave it blank.

Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:

2. Assets exchanged or traded in:

Motor #9, which had a cost of $5,420 and accumulated depreciation of $4,940, was traded in for a new motor (#23) with a fair market value of $6,450. The old motor and $6,170 in cash were given for the new motor.

Jan. 1	Motor #12, which had a cost of $2,890 and accumulated depreciation of $2,890, was discarded.
8	Motor #8, which had a cost of $4,440 and accumulated depreciation of $4,020, was sold for $260.
14	Motor #16, which had a cost of $5,730 and accumulated depreciation of $5,490, was sold for $470.

General Journal 1. Prepare general journal entries for the transactions. If an amount box does not require an entry, leave it blank. Page: 1 DATE ACCOUNT TITLENO. REF. DOC. POST.DEBIT CREDIT 1 20-Jan. 1 4 Jan. 8 9 Jan. 14 10 10 12 13 14 Feb. 1 13 14 15 15 16 16 18 18 19 19 20 Feb. 9 20 24 24

Solution

Jan 1.

Accumulated Depreciation Dr. 2890

Motor #12 Cr. 2890

Jan 8.

Cash Dr. 260

Accumulated depreciation Dr. 4020

Loss on sale of motor#8 Dr. 160 (4440-4020-260)

Motor#8 Cr. 4440

Jan 14.

Cash Dr. 5490

Accumulated Depreciation Dr. 470

Motor#16 Cr. 5730

Gain on sale of motor#16 Cr. 230 (470-(5730-5490))

Feb 1

Motor#22 Dr. 6800

Accumulated Dr. 4590

Cash Cr. 5300

Motor#6 Cr. 5860

Gain on sale of motor#6 230 (6800-5300)-(5860-4590)

Feb 9

Motor#23 Dr. 6450

Accumulated depreciation Dr. 4940

Loss on sale of motor#9 Dr. 200 (5420-4940)-(6450-6170)

Cash Cr. 6170

Motor#9 Cr. 5420