Computing and Recording Proceeds from the Sale of PPE The following information was provided in the...
Computing and Recording Proceeds from the Sale of PPE
The following information was provided in the 2018 10-K of Hilton Worldwide Holdings, Inc.
Note 7: Property and Equipment ($ millions)
| 2018 | 2017 | |
|---|---|---|
| Property and equipment, gross | $678 | $642 |
| Accumulated depreciation | (385) | (360) |
| Property and equipment, net | 293 | 282 |
Note 7 also revealed that depreciation expense on property and equipment totaled $43 million in 2018. The cash flow statement reported that expenditures for property and equipment totaled $58 million in 2018 and that there was no gain or loss on the sale of property and equipment during the year.
Using the information provided, prepare a journal entry to record the sale of property and equipment in 2018.
| Description | Debit | Credit |
|---|---|---|
| Cash | Answer | Answer |
| Accumulated depreciation/CashDepreciation/Gain on sale of property and equipment/Impairment loss/Loss on sale of property and equipment/Property and equipment | Answer | Answer |
| Accumulated depreciation/CashDepreciation/Gain on sale of property and equipment/Impairment loss/Loss on sale of property and equipment/Property and equipment | Answer | Answer |
Homework Answers
Answer
- Entry would be
|
Description |
Debit |
Credit |
|
Cash |
$4 |
|
|
Accumulated Depreciation |
$18 |
|
|
Property & equipment |
$22 |
- Workings
|
PPE Balance Beginning 2017 |
$642 |
|
Purchases during the year |
$58 |
|
PPE Balance Ending 2018 |
($678) |
|
Cost of the sold equipment |
$22 |
|
Accumulated Depreciation Beginning 2017 |
$360 |
|
Depreciation expense 2018 |
$43 |
|
Accumulated Depreciation Ending 2018 |
($385) |
|
Accumulated Depreciation on Equipment sold |
$18 |
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Computing and Recording Proceeds from the Sale of
PPE
The following information was provided in the...
Computing and Recording Depreciation Entries under Multiple Depreciation Methods
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Question text Computing and
Interpreting Percent Depreciated and PPE Turnover The following
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Property, Plant and Equipment Our property, plant and equipment,
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