Question

Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:Furniture (cost) Accumulated depreciation $8,000,000 7,700,000 Required: Prepare the journal entry for the disposal of the furniture, assuming that it was sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollars not in millions.) a. $300,000 cash b. $900,000 cash c. $100,000 cash

Answer 1

Answer:

Net Book Value of furniture:

= Cost price - Accumulated depreciation

= 8,000,000 - 7,700,000

= $300,000

a. $300,000 cash

        Account Title                                                        Debit                Credit

        Cash                                                               $300,000

        Accumulated Depreciation                         $7,700,000

        Furniture                                                                                 $8,000,000

b. $900,000 cash

       Account Title                                                        Debit                Credit

        Cash                                                               $900,000

        Accumulated Depreciation                        $7,700,000

        Furniture                                                                                 $8,000,000

       Gain on disposal                                                                      $600,000

c. $100,000 cash

       Account Title                                                        Debit                Credit

        Cash                                                               $100,000

        Accumulated Depreciation                          $7,700,000

       Loss on Disposal                                            $200,000

       Furniture                                                                               $8,000,000