Rec ord the s ale of the s helv ing units do not round

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Unformatted text preview: ul life of 13 y ears with an es timated res idual v alue of $800. Rec ord the s ale of the s helv ing units . (Do not round interm ediate calculations and round your final answers to the nearest dollar am ount. Om it the "$" sign in your response.) General J ournal Accum ulated depreciation, store fixtures Loss on sale of store fixtures Cash Store fixtures Debit 4,000 200 1800 Credit 6,000 Worksheet M8­8 Recording the Disposal of a Long­ Learning Objective: 08­05 Analyze the Lived Asset (Straight­Line Depreciation) disposal of property, plant, and LO5 equipment. M8-8 Recording the Disposal of a Long-Lived Asset (Straight-Line Depreciation) LO5 As part of a major renov ation at the beginning of the y ear, Sc heffer’s Pharmac y , Inc ., s old s helv ing units (s tore fix tures ) that were 10 y ears old for $1,800 c as h. The original c os t of the s helv es was $6,000 and they had been deprec iated on a s traight­line bas is ov er an es timated us eful life of 13 y ears with an es timated res idual v alue of $800. Rec ord the s ale of the s helv ing units . (Do not round interm ediate calculations and round your final answers to the nearest dollar am ount. Om it the "$" sign in your response.) General J ournal Cas h Ac c umulated deprec iation, s tore fix tures Los s on s ale of s tore fix tures Store fix tures Debit 1,800 ± 2% 4,000 ± 2% 200 ± 2% Credit 6,000 ± 2% Explanation: Store fix tures (original c os t) Ac c umulated deprec iation at end of tenth y ear Deprec iation ex pens e = ($6,000 c os t – $800 res idual v alue) × 1/13 = $400 Ac c umulated deprec iation = $400 annual deprec iation ex pens e × 10 y rs = Net book v alue at end of tenth y ear (i.e., NBV immediately prior to s ale) $ 6,000 4,000 $ 2,000 3. awar d: 0.20 out of 0.20 points M8-9 Computing Goodwill and Patents LO6 Eliz abeth Pie Company has been in bus ines s for 50 y ears and has dev eloped a large group of loy al res taurant c us tomers . Giant Bak ery Inc . has made an offer to buy Eliz abeth Pie Company for $5,000,0...
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This homework help was uploaded on 02/23/2014 for the course BUSE 30000 taught by Professor N/a during the Winter '12 term at UChicago.

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