The Kingsly Company of Wabamun had disposals of various capital assets for its latest fiscal year, which ended December 31, 2013 (all amounts are net of GST):
a. Feb. 23, 2013: Sold for $2,000 a large drafting table with all accompanying fittings that had cost $11,300 and had accumulated amortization of $8,680.
b. Mar. 5, 2013: A laptop computer that had cost $4,250 a couple of years ago, and that had accumulated amortization of $2,710, was stolen from the car of a company officer. No insurance is maintained on assets like this, and police had a good laugh when asked about the chances of its being found.
c. Apr. 23, 2013: An old forklift that had originally cost $18,600 and with accumulated amortization of $12,570 (to the end of March 2013) was traded in on a new unit with somewhat greater capacity. The new unit had a selling price of $34,000, and the old forklift was given a trade-in price of $9,500. Since the company takes no amortization in the month of purchase, but a full month’s in the month of disposal, the amortization amount of $83 needs to be recorded in April 2013 before recording the purchase/trade-in.
d. Oct. 12, 2013: A movie producer from California wrote a cheque for $200,000 (plus GST of $10,000) for an old coal-crushing machine that had been fully amortized eight years previously. (Net book value is now zero.) The crusher had cost $1,600,000 in 1972, but was too old and underpowered to function in a modern mining operation. The machine is to be a main prop in a forthcoming movie filmed mainly in Alberta. The film company assumed financial responsibility for dismantling and moving the large machine.
Required
Record the above disposals in general journal format. Please also record any necessary adjustments as indicated in each item a. to d.