Marriott International is a worldwide operator and franchisor of hotels and rela

Question

Marriott International is a worldwide operator and franchisor of hotels and related lodging facilities totaling over $1.5 billion in property and equipment. It also develops, operates, and markets time-share properties totaling nearly $2.16 billion. 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) $ 6,130,000

Accumulated depreciation 5,628,000

Required:

1. Prepare the journal entry for the disposal of the furniture, assuming that it was sold for:

a. $502,000 cash

b. $1,602,000 cash

c. $402,000 cash

Note: 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.

Explanation / Answer

Journal Entries Particulars Dr Amt Cr Amt a) Cash A/C Dr                           502,000.00 Accumulated Depreciation A/C Dr                       5,628,000.00 To Furniture A/C              6,130,000.00 b) Cash A/C Dr                       1,602,000.00 Accumulated Depreciation A/C Dr                       5,628,000.00 To Furniture A/C              6,130,000.00 To Profit on Sale of Furniture              1,100,000.00 c) Cash A/C Dr                           402,000.00 Accumulated Depreciation A/C Dr                       5,628,000.00 Loss on Sale of Furniture                           100,000.00 To Furniture A/C              6,130,000.00

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