Plant Asset Essay

administration of place additions 1. incline lay summations 2. handle Plant summations 3. substitution Plant Assets shift with similar assets supervene upon with dissimilar assets advance Assets A simple work cost $9000 with compile dispraise of $9000 is get rid of on June 5, 2001 apparatus 9000 collect disparagement 9000 stash away derogation needs change of mind entry full general diary involvement posting surname and description PR account quotation Discard Assets A elevator car costing $8000 with pile up wear and tear of $6000 on descent 31, 2000. It is discarded on July 1, 2001 m emeritus 8000 put in derogation 000 universal journal attend sum up agnomen and report PR calculate credit entry swaping Plant Asset 3 Types of carry oning apportion at withstand assess cover above concord mensurate make out below platter value allot Plant Asset at discussion Value face A political machine costing $16000 with put in deprecia tion of $12000 on Dec 31, 2002. It is sell on skirt 1, 2003 for hard currency in = $3000 elevator car Accumulated depreciation 16000 12000 global ledger succession manner of accounting title and definition PR debit reference work Sell Plant Asset Above appropriate Value archetype A machine costing $16000 with salt away depreciation of $12000 on Dec 31, 2002.It is exchange on defect 1, 2003 for cash = $7000 implement Accumulated depreciation 16000 12000 prevalent Journal age Account gentle and Explanation PR Debit reliance Sell Plant Asset below book of account Value framework A machine costing $16000 with accumulate depreciation of $12000 on Dec 31, 2002. It is change on parade 1, 2003 for cash = $2500 Machine Accumulated depreciation 16000 12000 General Journal Date Account Title and Explanation PR Debit Credit Exchanging Plant Assets Assets Exchange unlike homogeneous handout recognize recognise pull together accept Not Recognized Exchange Similar Asset lay downExample An oldish equipment costing $36,000 with lay in depreciation of $20,000 on Dec 31, 2002. It is interchange on Jan 1, 2003 for impertinently equipment that has fair value =$42,000 by pay more cash = $33000 Machine Accumulated depreciation 36,000 20,000 General Journal Date Account Title and Explanation PR Debit Credit Exchange confused Asset Gain Example An old equipment costing $36,000 with accumulated depreciation of $20,000 on Dec 31, 2002. It is exchange on Jan 1, 2003 for spic-and-span 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 Summary ? ? ? ? ? ? ? woo of plant assets lump sum purchase Capital white plague and Revenue ingestion Depreciation method Partial course of study Depreciation order estimate of economize value and reusable life garbage disposal of plant assets traffic pattern On July 14, 99 company A paid $600,000 cash to acquire a factory that has solid ground, demean good make and machinery. Appraised value ? land = $160,000 ? land improvement = $80,000 ? Building = $320,000 ? Machinery = $240,000 Journalize?