Marionnette International is a worldwide operator and franchisor of hotels and r

Question

Marionnette International is a worldwide operator and franchisor of hotels and related lodging facilities totaling nearly $1.6 billion in net property and equipment. Assume that Marionnette 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 $6,060,000 5,551,000 Required: 1. 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. $509,000 cash b. $1,619,000 cash c. $407,000 cash View transaction list Journal entry worksheet Record the disposal of the furniture, assuming the furniture sold for $509,000 cash Note: Enter debits before credits Transaction General Journal Debit Credit a. Record entry Clear entry View general journal

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Working-1 Cost 6060000 Less: Acc Dep 5551000 Carrying Amount 509000 Working-2 Sale Value 509000 1619000 407000 Less: Carrying Amount 509000 509000 509000 Gain/(Loss) 0 1110000 -102000 Journal: 1 Sale Value 509000 Cash 509000 Cash Received i.e sale value Accumulated Depreciation 5551000 Dep given in que Gain on sale of asset 0 0 Working-2 Furniture (Asset) 6060000 Cost of Furniture - purchase price Journal: 2 Sale Value 1619000 Cash 1619000 Cash Received i.e sale value Accumulated Depreciation 5551000 Dep given in que Gain on sale of asset 1110000 Working-2 Furniture (Asset) 6060000 Cost of Furniture - purchase price Journal: 3 Sale Value 407000 Cash 407000 Cash Received i.e sale value Accumulated Depreciation 5551000 Dep given in que Loss on sale of asset 102000 Working-2 Furniture (Asset) 6060000 Cost of Furniture - purchase price

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