10606      ENTRY NO. A–7 [FIXED ASSET ACCOUNTS ARE ADJUSTED FOR UNSOLD SURVEYED EQUIPMENT]
(Renumbered 5/95)

Nature of Transaction:

Fixed 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 General Fixed Assets b/
Credit:
2341 Equipment   b/
9000 Appropriation Expenditures   a/
 
a/ Estimated amount to be received from sale of surveyed equipment that was budgeted to be traded-in.
b/ Book value of above equipment.

Source:
Detailed list of equipment 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 items of equipment 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 equipment as an abatement to the appropriation expenditure account of the fiscal year just ended and to write-off such equipment from the fixed asset accounts.