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    During The Current Year Blake Construction Disposed of Plant Assets

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    trilocksp Singh
    Blake Construction disposed of several plant assets during the year through various transactions: 1) Equipment was given away for no charge with accumulated depreciation of $16,800 of the $18,000 cost. 2) Land and a building were sold for $800,000, receiving $100,000 cash and a five-year note receivable for the balance, with accumulated depreciation of $250,000 on the building. 3) An old truck was traded in for a new one, with the old truck's cost of $26,000 and accumulated depreciation of $22,000, receiving a $12,000 trade-in allowance.

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    During The Current Year Blake Construction Disposed of Plant Assets

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    trilocksp Singh
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    Blake Construction disposed of several plant assets during the year through various transactions: 1) Equipment was given away for no charge with accumulated depreciation of $16,800 of the $18,000 cost. 2) Land and a building were sold for $800,000, receiving $100,000 cash and a five-year note receivable for the balance, with accumulated depreciation of $250,000 on the building. 3) An old truck was traded in for a new one, with the old truck's cost of $26,000 and accumulated depreciation of $22,000, receiving a $12,000 trade-in allowance.

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    Blake Construction disposed of several plant assets during the year through various transactions: 1) Equipment was given away for no charge with accumulated depreciation of $16,800 of the $18,000 cost. 2) Land and a building were sold for $800,000, receiving $100,000 cash and a five-year note receivable for the balance, with accumulated depreciation of $250,000 on the building. 3) An old truck was traded in for a new one, with the old truck's cost of $26,000 and accumulated depreciation of $22,000, receiving a $12,000 trade-in allowance.

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    84 views1 page

    During The Current Year Blake Construction Disposed of Plant Assets

    Uploaded by

    trilocksp Singh
    Blake Construction disposed of several plant assets during the year through various transactions: 1) Equipment was given away for no charge with accumulated depreciation of $16,800 of the $18,000 cost. 2) Land and a building were sold for $800,000, receiving $100,000 cash and a five-year note receivable for the balance, with accumulated depreciation of $250,000 on the building. 3) An old truck was traded in for a new one, with the old truck's cost of $26,000 and accumulated depreciation of $22,000, receiving a $12,000 trade-in allowance.

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    During the current year Blake Construction disposed of

    plant assets
    During the current year, Blake Construction disposed of plant assets in the following
    transactions:Jan. 6 Equipment costing $18,000 was given to a scrap dealer at no charge. At the
    date of disposal, accumulated depreciation on the office equipment amounted to $16,800.Mar. 3
    Blake sold land and a building for $800,000, receiving $100,000 cash and a five-year,12 percent
    note receivable for the remaining balance. Blake’s records showed the following amounts:
    Land, $50,000; Buildings, $680,000; Accumulated Depreciation: Building (at the date of
    disposal), $250,000.Jul. 10 Blake traded in an old truck for a new one. The old truck had cost
    $26,000, and its accumulated depreciation amounted to $22,000. The list price of the new truck
    was$37,000, but Blake received a $12,000 trade-in allowance for the old truck and paid only
    $25,000 in cash. Blake includes trucks in its Vehicles account.Sept. 3 Blake traded in its old
    computer system as part of the purchase of a new system. The old system had cost $12,000,
    and its accumulated depreciation amounted to $9,000.The new computer’s list price was
    $10,000. Blake accepted a trade-in allowance of$400 for the old computer system, paying
    $1,000 down in cash and issuing a one-year,10 percent note payable for the $8,600 balance
    owed.Instructionsa. Prepare journal entries to record each of the disposal transactions. Assume
    that depreciation expense on each asset has been recorded up to the date of disposal. Thus
    you need not update the accumulated depreciation figures stated in the problem.b. Will the
    gains and losses recorded in part a above affect the gross profit reported in Blake’s income
    statement? Explain.c. Explain how the financial reporting of gains and losses on plant assets
    differs from the financial reporting of unrealized gains and losses on marketable securities
    discussed in Chapter7.View Solution:
    During the current year Blake Construction disposed of plant assets
    SOLUTION-- http://solutiondone.online/downloads/during-the-current-year-blake-construction-
    disposed-of-plant-assets/

    Unlock answers here solutiondone.online


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