Accounting for the Disposal of Fixed Assets

accounting_2assignment_mod_02.xlsx

M2 Assignment

Module 2 Assignment:
Pets Unlimited had a piece of equipment that it purchased 10 years ago. Its cost was $110,000 and it had accumulated depreciation of $75,000. Record the disposition of the asset under the following independent situations:
1	Pets Unlimited sold the equipment for $25,000.
2	Pets Unlimited discarded the equipment at a cost of $10,000.
3	Pets Unlimited traded in the asset for a new similar asset with a list price of $120,000. Pets Unlimited was given $10,000 as a trade-in allowance and paid cash for the balance.
4	Pets unlimited traded in the asset for a new similar asset with a list price of $200,000. Pets Unlimited was given a trade-in allowance of $50,000 and took signed a note payable for the remainder.
1	Pets Unlimited sold the equipment for $25,000.
	Description	Debit	Credit
2	Pets Unlimited discarded the equipment at a cost of $10,000.
	Description	Debit	Credit
3	Pets Unlimited traded in the asset for a new similar asset with a list price of $120,000. Pets Unlimited was given $10,000 as a trade-in allownace and paid cash for the balance.
	Description	Debit	Credit
4	Pets unlimited traded in the asset for a new similar asset with a list price of $200,000. Pets Unlimited was given a trade-in allowance of $50,000 and took signed a note payable for the remainder.
	Description	Debit	Credit