The following are the transactions of Morrell Corporation: a. Morrell Corporatio

Question

The following are the transactions of Morrell Corporation:

a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,500 and their Accumulated Depreciation was $4,500. No residual value was received. b.Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,000.

Journal Entry:

Record the disposal of computers that had cost $4,500 and their accumulated depreciation to the date of disposal was $4,500.

Explanation / Answer

S.NO. Particular Dr. Cr.           1 Accumulated depreciation    4,500.00 Machine asset    4,500.00 (For disposal of assets)           2 Accumulated depreciation    3,000.00 Loss on asset disposal    1,500.00 Machine asset    4,500.00 (For disposal of assets)

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