Essay About Plant Assets And Equipment                        62,000June

Review Session for Final Exam
Review session for FINAL EXAM ACCT 6087Chapter 10 Plant Assets, depreciation, gain/loss on disposalChapter 13 Capital Stock TransactionChapter 14 Dividends and Retained EarningsChapter 15 Bonds and MortgageChapter 17 Statement of Cash FlowEXERCISE 10-9Jan.        1        Accumulated Depreciation—Equipment                62,000                        Equipment                        62,000June        30        Depreciation Expense                 4,500                        Accumulated Depreciation—Equipment                          ($45,000 X 1/5 X 6/12)                         4,500        30        Cash                14,000                Accumulated Depreciation—Equipment                  ($45,000 X 3/5 = $27,000; $27,000 + $4,500)                31,500                        Gain on Disposal of Plant Assets                          [$14,000 – ($45,000 – $31,500)]                        500                        Equipment                        45,000Dec.        31        Depreciation Expense                 5,000                        Accumulated Depreciation—Equipment                          [($33,000 – $3,000) X 1/6]                        5,000        31        Loss on Disposal of Plant Assets                 8,000                Accumulated Depreciation—Equipment                  [($33,000 – $3,000) X 5/6]                25,000                        Equipment                        33,000EXERCISE 10-10(a)        Cash                31,000        Accumulated Depreciation—Equipment         [($65,000 – $5,000) X 3/5]                36,000                Equipment                        65,000                Gain on Disposal of Plant Assets                        2,000(b)        Depreciation Expense         [($65,000 – $5,000) X 1/5 X 4/12]                4,000