Proli Footwear Analysis of Long-Lived Asset Disposals and Related Gains/Losses D
ID: 2576494 • Letter: P
Question
Proli Footwear Analysis of Long-Lived Asset Disposals and Related Gains/Losses December 31, 2014 Accumulated Book Cash Gain/ Description of Item Cost Depreciation Value Received * (Loss) Balance per trial balance 0 Audit adjustments: Sale of 1 type E machine - Manufacturing Equipment Note: purchased in 1996-15 year life 103,330 103,330 0 12,000 Sale of 2 type BB equipment - Warehouse Equipment Note: purchased in 2001-15 year life 794,960 688,961 105,999 1,000 Balance per audit 898,290 792,291 *Miscellaneous income (account #8500) was credited for the cash received. RP Note: Prepare one AJE for each item sold. RP Proli Footwear Analysis of Long-Lived Asset Disposals and Related Gains/Losses December 31, 2014 Accumulated Book Cash Gain/ Description of Item Cost Depreciation Value Received * (Loss) Balance per trial balance 0 Audit adjustments: Sale of 1 type E machine - Manufacturing Equipment Note: purchased in 1996-15 year life 103,330 103,330 0 12,000 Sale of 2 type BB equipment - Warehouse Equipment Note: purchased in 2001-15 year life 794,960 688,961 105,999 1,000 Balance per audit 898,290 792,291 *Miscellaneous income (account #8500) was credited for the cash received. RP Note: Prepare one AJE for each item sold. RPExplanation / Answer
1) Accumulated depreciation-equipment 103,330
Cash 12,000
Cost-equipment 103,330
Gain of disposal 12,000
2) Sale of 2 type BB equipment - Warehouse Equipment
Accumulated depreciation-equipment 688,961
Cash 1,000
Loss of disposal 104,999
Cost-equipment 794,960
Sale of 1 type E machine Manufacturing Equipment
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