ezto.mheducation.com COB M Disposal of Assets -Chapter 8 extra credit Check Your
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ezto.mheducation.com COB M Disposal of Assets -Chapter 8 extra credit Check Your Work Disposal of Assets- Chapter 8 extra credit instructions Ihelp Questions 1-2 (of 2)> Save & Exit Submit The following information applies to the questions displayed below During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the accounts reflected the following: Original Cost Residual Value Estimated Life Accumulated Depreciation (straight line) Asset Machine A Machine B Machine G $39,000$3,000 10 years28,800 (8 years) 57,000 76,100 4,000 10 years 5,600 17 years 42,400 (8 years) 49,765 (12 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $9,800 cash. b. Machine B: Sold on December 31 for $10,100; received cash, $2,200, and a $7,900 interest-bearing (12 percent) note receivable due at the end of 12 months C. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. 1 Required information Required 1. Give all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Machine A.Explanation / Answer
2)a)Results in a loss
b)Results in a gain
c)Results in a loss
Date Account debit credit a Cash 9800 Accumulated depreciation-machine A 28800 loss on sale of machine 400 Machine A 39000 B Cash 2200 Note receivable 7900 Accumulated depreciation -machine B 42400 loss on sale of machine B Machine B 57000 c Accumulated depreciation-machine C 49765 loss on removal of machine 26335 Machine C 76100Related Questions
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