1. LESSON 18-4
Disposing of Plant Assets
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. SALE OF A PLANT ASSET FOR
BOOK VALUE
2
page 546
January 6, 20X6. Received cash from sale of display case, $250.00:
original cost, $3,250.00; total accumulated depreciation through
December 31, 20X5, $3,000.00. Receipt No. 4.
1
1. Record an
entry in the
cash receipts
journal to
remove the
original cost.
2
2. Check the type of disposal, and write the
date, and disposal amount in Section 2 of the
plant asset record.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4

3. 3
RECORDING A PLANT ASSET’S DEPRECIATION
EXPENSE FOR A PARTIAL YEAR
page 547
April 4, 20X7. Recorded a partial year’s depreciation on a safe to
be sold, $60.00. Memorandum No. 31.
1
2
3
1. Debit the depreciation expense account.
2. Credit the accumulated depreciation account.
3. Update Section 3 of the plant asset record.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4

4. 4
SALE OF A PLANT ASSET FOR MORE
THAN BOOK VALUE
page 548
April 4, 20X7. Received cash from sale of safe, $425.00: original
cost, $1,800.00; accumulated depreciation through April 4, 20X7,
$1,500.00. Receipt No. 47.
1
1. Remove the
original cost.
Record the gain
on the sale.
Record the cash
received from
the sale.
2
2. Check the type of disposal. Write the date and
disposal amount in Section 2 of the plant asset
record.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4

5. 5
SALE OF A PLANT ASSET FOR LESS
THAN BOOK VALUE
page 549
October 6, 20X7. Received cash from sale of a computer, $150.00:
original cost, $1,900.00; total accumulated depreciation through
October 1, 20X7, $1,500.00. Receipt No. 281.
1
2
1. Remove the original cost. Record the loss on the
sale. Record the cash received from the sale.
2. Check the type of disposal and write the date and
disposal amount in Section 2.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4

6. 6
TERMS REVIEW
page 550
 gain on plant assets
 loss on plant assets
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4

7. 6
TERMS REVIEW
page 550
 gain on plant assets
 loss on plant assets
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 18-4