Question

Marriott international is a worldwide operator and franchiser of hotels and related lodging facilities totaling nearly $1.5 billion in net property and equipment. assume that marriott replaced furniture that had been used in the business for five years. the records of the company reflected the following regarding the sale of the existing furniture: furniture (cost) $8,000,000 accumulated depreciation 7,700,000

Required: Give the journal entry for the disposal of the furniture, assuming that it was sold for $300.000

Answer 1

The journal entry for Marriott International's furniture disposal, when sold for its book value of $300,000, would include a debit to Accumulated Depreciation for $7,700,000, a debit to Cash for $300,000, and a credit to Furniture for $8,000,000.

Step-by-step explanation:

The student is asking how to make a journal entry for the disposal of furniture in Marriott International's accounting records, assuming the furniture was sold. First, we need to remove the book value of the furniture from the company's balance sheet. The book value is the cost of the furniture minus its accumulated depreciation. In this case:

Book value = original cost - accumulated depreciation

= $8,000,000 - $7,700,000

= $300,000

Since the furniture was sold for $300,000, which equals its book value, there will be no gain or loss on the sale. The journal entry would be:

• Debit Accumulated Depreciation for $7,700,000
• Debit Cash for $300,000
• Credit Furniture for $8,000,000

This reflects the collection of cash and removes both the furniture's original cost and its related depreciation from the books.