ENTRY A-7, CAPITAL ASSET ACCOUNTS ARE ADJUSTED FOR UNSOLD SURVEYED EQUIPMENT - 10606
Nature of Transaction:
Capital asset accounts are adjusted for unsold surveyed equipment and its estimated sales value is recorded to give effect to such uncompleted equipment transactions in final year-end statements and reports of funds where receipts of such transactions are abated to an appropriation specific in amount. This entry is made as of June 30 and is semi-reversed as of July l. (See Entry No. A–7R.)
Journal Entry for General Ledger Account:
Debit:
2740 Inventory of Surveyed Equipment a/
5200 Investment in Capital Asset b/
Credit:
2310 Land b/
2321 Buildings b/
2331 Improvements Other than Buildings b/
2333 Utility Plant in Service b/
2341 Equipment b/
2361 Infrastructure-Non-depreciable b/
2413 Patents, Copyrights, Trademarks–Amortizable b/
2414 Other Intangible Assets – Amortizable b/
2422 Land Use Rights – Non-Amortizable b/
2423 Patents, Copyrights, Trademarks--Non-Amortizable b/
2424 Other Intangible Assets--Non-Amortizable b/
9000 Appropriation a/
a/ Estimated amount to be received from sale of surveyed capital asset that was budgeted to be traded-in.
b/ Book value of above capital asset. (Continued)
Source Document:
Detailed list of items supporting this entry. This list will be retained by the agency as an accounting document for audit purposes.
Explanation:
This entry is made only for those capital assets that were budgeted to be traded-in during the fiscal year and have been surveyed but are still on hand pending sale in lieu of trade-in. The purpose of this entry is to accrue the estimated sales value of surveyed capital assets as an abatement to the appropriation expenditure account of the fiscal year just ended and to write-off from the capital asset accounts.