Question

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	$1,102	$1,044
Accumulated depreciation	(625)	(585)
Property and equipment, net	477	459

Note 7 also revealed that depreciation expense on property and equipment totaled $70 million in 2018. The cash flow statement reported that expenditures for property and equipment totaled $94 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
(Accumulated depreciation)(Cash)(Depreciation)(Gain on sale of property and equipment)(Impairment loss)(Loss on sale of property and equipment)(Property and equipment)
(Accumulated depreciation)(Cash)(Depreciation)(Gain on sale of property and equipment)(Impairment loss)(Loss on sale of property and equipment)(Property and equipment)

Answer 1

Answer
Entry would be
Description	Debit	Credit
Cash	$               6
Accumulated Depreciation	$             30
Property & equipment		$          36
Workings
PPE Balance Beginning 2017	$        1,044
Purchases during the year	$             94
PPE Balance Ending 2018	-$       1,102
Cost of the sold equipment	$             36
Accumulated Depreciation Beginning 2017	$           585
Depreciation expense 2018	$             70
Accumulated Depreciation Ending 2018	-$          625
Accumulated Depreciation on Equipment sold	$             30