HORNGREN’S ACCOUNTING – 12th Edition
S10-7
Solution:
Debit Credit
Accumulated Depreciation-Equipment 27,000
Equipment 27,000
Journalize the disposal of the equipment.
Date
Accounts and Explanation
Jun-15
Chapter 10: Plant Assets, Natural Resources, and Intangibles Page 1 of 19
HORNGREN’S ACCOUNTING – 12th Edition
S10-8
Solution:
Partial year depreciation=1600
Market value of assets received 0
Less:Book value of asset disposed of
Cost 26920
Less:Accumulated Depreciation
26,600 320
Gain or Loss 320
Debit Credit
Depreciation Exp-Equipment 1,600
Accumulated Depreciation-Equipment 1,600
Accumulated Depreciation-Equipment 26,600
Loss on Disposal 320
Equipment 26,920
31
Journalize the partial year depreciation expense and disposal of the equipment.
Date
Accounts and Explanation
31-Oct
Chapter 10: Plant Assets, Natural Resources, and Intangibles Page 2 of 19
HORNGREN’S ACCOUNTING – 12th Edition
Chapter 10: Plant Assets, Natural Resources, and Intangibles Page 3 of 19
HORNGREN’S ACCOUNTING – 12th Edition
S10-9
Solution:
Market value of assets received 20,000
Less: Book value of asset disposed of
Cost 27,500
Less: Accumulated Depreciation 10,000 17,500
Gain or Loss 2,500$
Debit Credit
Cash 20,000
Accumulated Depreciation 10,000
Equipment 27,500
Gain on Disposal 2,500
Journalize the sale of the equipment, assuming straight-line depreciation was used.
Date
Accounts and Explanation
31-Dec
Chapter 10: Plant Assets, Natural Resources, and Intangibles Page 4 of 19
HORNGREN’S ACCOUNTING – 12th Edition
E10-17
Requirements
1.
2.
Solution:
Requirement 1
purchase price
$65,000
note payable 250,000
Land
Improvements
Building
Determine the cost of the land, land improvements, and building.
Which of these assets will Lawson depreciate?
Land
title insurance
