1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
AleksAgata [21]
3 years ago
10

Suppose a piece of plant equipment that PepsiCo put into service on January 1, 2014, at a total cost of $300,000 with an expecte

d useful life of 5 years and a salvage value of $60,000 is sold on June 30, 2018, for $60,000. The accumulated depreciation is $216,000.
What would the journal entry look like to record this sale?
Business
1 answer:
Iteru [2.4K]3 years ago
7 0

Answer:

Juen 30 2018 Cash                                                  $60000 Dr

                       Accumulated Depreciation              $216000 Dr

                       Loss on Disposal-Plant Equipment  $24000 Dr

                                   Plant Equipment                           $300000 Cr

Explanation:

The sale of an asset requires a firm to write off that asset from the books at cost. The writing off would require the credit to the asset account at cost along with a debit to the accumulated depreciation account that is created against this asset.

We also calculate the gain or loss on disposal of asset. An asset has a gain on disposal if the cash received from its sale is more than its carrying value and vice versa.

Carrying Value = Cost - Accumulated Depreciation

Carrying value = 300000 - 216000 = $84000

The asset loss on disposal = 60000 - 84000 = 24000 loss

We debit the loss on disposal and cash received from sale to complete the journal entry

You might be interested in
Which step in developing a mission statement requires you to think about who is affected by your organization and how they might
Alik [6]

Answer:

Considering the stakeholders' perspectives.

Explanation:

Considering the stakeholders' perspectives is a step in developing a mission statement which requires that you to think about who is affected by your organization and how they might measure your success.

Generally, when the top executives or management are developing a mission statement, decisions, and goals, it is very essential and important that they ensure it is favourable to the stakeholders. Stakeholders can be defined as a group of people who have interest or shares in a business entity and are affected by the decisions of the company.

<em>Hence, the stakeholders perspective needs to be considered at all times because they're part of the business and their actions can affect the success of the business. </em>

5 0
3 years ago
What is the multiplier
Luda [366]
Person or thing that multiplies.
a quantity by which a given number (the multiplicand) is to be multiplied.
ECONOMICS
the factor by which the return deriving from an expenditure exceeds the expenditure itself.
7 0
3 years ago
Which of the following statements about private club
algol [13]

Answer:

D: Guests must pay for any alcoholic beverages

they consume.

Explanation:

Guests in any establishment are expected to pay for any alcoholic beverages they consume. A private club is not necessary a profit-making venture, but a social or networking establishment. Membership to a private club is restricted. Members usually pay a membership to join and a regular subscription fee.

The club purchases foods and drinks served in its premises. The food and beverages are sold to members at fair prices. Members are required to pay for what they consume. Many clubs do not charge a service fee as it is catered for in the recurring subscription fees.

4 0
3 years ago
José spends most of his time thinking about Sheila, the love of his life. This had led to José neglecting his course work. From
Rainbow [258]

Answer:

D. his fixed amount of psychic energy

Explanation:

6 0
3 years ago
the process of using information to link customers, consumers, and the public to the marketer is referred to as _____.
Olegator [25]

Answer:

the process of using information to link customers, consumers, and the public to the marketer is referred to as marketing Research!!

go for it!!

8 0
2 years ago
Other questions:
  • Of the 27.8 million businesses in this country at the end of 2008, the majority _____.
    5·1 answer
  • After exporting, the next level of commitment a firm can make to a foreign market is a contractual agreement. two of the most co
    8·2 answers
  • Bargain Styles Inc. is an apparel company that caters to the highly price-conscious customers. Through its simple apparel design
    7·1 answer
  • Danielle, a graduate in fashion technology, always found it tough to find clothes for her as she belonged to the category of plu
    6·1 answer
  • 4. In centralized decision making, authority is
    15·1 answer
  • Solve the Systems of Equations by 'substitution or eliminat
    15·1 answer
  • Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes. What type of term life
    14·1 answer
  • Becker and Murphy wrote their article before DVR systems and online streaming services became popular. Nowadays, ads on televisi
    6·1 answer
  • After his company announced that it plans to cut 30% of the workforce within the next 90 days, Deon begins to experience chronic
    7·1 answer
  • On January 1, Year 1, Michael sold a property with a remaining useful life of 20 years to Wei Co. for $800,000. On the same date
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!