Select your language

Suggested languages for you:
Log In Start studying!
Answers without the blur. Just sign up for free and you're in → Illustration


Horngren'S Financial And Managerial Accounting
Found in: Page 527

Short Answer

Discarding of a fully depreciated asset On June 15, 2017, Family Furniture discarded equipment that cost $27,000, a residual value of $0, and was fully depreciated. Journalize the disposal of the equipment.

Accumulated Depreciation is not a process of valuation. Businesses do not record depreciation based on changes in the asset’s market value.

See the step by step solution

Step by Step Solution

Step 1: Meaning of Disposal on Equipment

The term disposal on equipment refers to the process of eliminating the value of the equipment from the company's books of account. This helps the company reduce the value of the asset according to its age and use in the business.

Step 2: Journalize the disposal of the equipment


Account & Explanation

Debit ($)

Credit ($)

Accumulated depreciation-Equipment




Most popular questions for Business-studies Textbooks


Want to see more solutions like these?

Sign up for free to discover our expert answers
Get Started - It’s free

Recommended explanations on Business-studies Textbooks

94% of StudySmarter users get better grades.

Sign up for free
94% of StudySmarter users get better grades.