Akuntansi Pengantar-Fixed aset & Natural Resources (Part 2)

Summary

This video explains the accounting processes for disposing of fixed assets and natural resources, focusing on methods like selling, scrapping, and exchanging. It covers key aspects of depreciation and depletion, highlighting the necessary journal entries for each case. Through practical examples, such as asset disposal of a printer and the sale of office furniture, as well as the depletion of natural resources like coal, viewers will learn how to record asset disposals and manage depreciation/depletion in their financial statements effectively.

Takeaways

• 😀 Fixed assets can be disposed of in three main ways: sale, scrapping, or exchange.
• 😀 When disposing of fixed assets, depreciation must be considered, and journal entries must reverse accumulated depreciation and remove the asset from the books.
• 😀 In the case of asset sales, the book value (cost minus accumulated depreciation) is compared with the sale price to determine if there’s a gain or loss.
• 😀 When assets are scrapped, if no cash is involved, you debit accumulated depreciation and credit the asset account. Any remaining book value is recorded as a loss.
• 😀 Exchange of assets involves trading an old asset for a new one, where no cash changes hands, but the old asset’s value is removed and the new asset is recorded.
• 😀 When selling an asset for more than its book value, a gain is recorded; when sold for less, a loss is recorded.
• 😀 Depreciation uses the straight-line method, where the cost of the asset minus its residual value is spread evenly over its useful life.
• 😀 In the case of an asset disposal, the journal entry for a sale involves debiting cash received, crediting accumulated depreciation, and recording any gain or loss from the sale.
• 😀 Natural resources are treated similarly to fixed assets, but the cost of extraction is recorded as **depletion** rather than depreciation.
• 😀 Depletion is calculated based on the total cost of extracting natural resources divided by the total estimated units (e.g., tons), and then multiplied by the units extracted in a given period.
• 😀 For natural resource companies, depletion expenses are recorded in the journal as a debit to inventory and a credit to accumulated depletion based on the amount of resource extracted.

Q & A

What are the three methods a company can use to dispose of fixed assets?

A company can dispose of fixed assets by selling them, retiring or abandoning them, or exchanging them for another asset.

What is the journal entry when a fixed asset is abandoned?

When a fixed asset is abandoned, the journal entry involves debiting the accumulated depreciation account to remove its accumulated depreciation and crediting the asset account to remove the asset from the books.

How do you calculate the book value of an asset?

The book value of an asset is calculated by subtracting its accumulated depreciation from its original cost.

What happens if an asset is sold for more than its book value?

If an asset is sold for more than its book value, the company records a gain on the sale of the asset.

What is a 'loss on disposal' and how is it recorded?

A loss on disposal occurs when an asset is sold for less than its book value. It is recorded as an expense in the journal entry.

What does the term 'depletion' refer to in accounting?

Depletion refers to the allocation of the cost of natural resources over their useful life, similar to depreciation for fixed assets.

What is the formula for calculating depletion expense?

The formula for calculating depletion expense is: Depletion per unit = (Total cost of natural resource - Residual value) / Estimated total units of resource. Then, the annual depletion expense is calculated by multiplying the depletion per unit by the number of units extracted in the year.

How is depreciation for a natural resource calculated?

Depreciation for a natural resource, known as depletion, is calculated by dividing the total cost of acquiring and developing the resource by the estimated number of units that can be extracted.

What is the significance of accumulated depreciation in asset disposal?

Accumulated depreciation reflects the total depreciation expense that has been recognized for an asset over time. When an asset is disposed of, accumulated depreciation is debited to eliminate it from the books, ensuring the asset is removed correctly from the financial statements.

In the case of an asset disposal, how is a gain or loss on sale determined?

A gain or loss on sale is determined by comparing the asset's book value (original cost minus accumulated depreciation) with the sale price. If the sale price exceeds the book value, a gain is recorded; if it is less, a loss is recorded.