ezto.mheducation.com Disposal of Assets for Questions 1-2 (of 2) Save & Ext Subm

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ezto.mheducation.com Disposal of Assets for Questions 1-2 (of 2) Save & Ext 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 Estimated Asset Machine A Machine B Machine C Value (straight line) s 2700o 3,000 8 years S 18.000 (6 years) 45,000 76,500 4,000 10 years 6.900 17 years 32,800 (8 years) 49129 (12 years) The machines were disposed of in the following ways a. Machine A Sold on Denceanbt ror se .8dh eceived cash, s2.300 ad terest bearing(t2 percentd note recevotble due at he 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 December 31 for $8,800; received cash, $2.30o, and a $6,500 interest-bearing (12 percent note receivable due at the end of 12 months Required information 1. Required: 1. Give all journal a. Machine A. 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.)

Explanation / Answer

Reauiqrement 1

Machine A

Machine B

Machine C

Requirement 2

Tranaction General journal Debit credit 1 Cash $8,700 Accumulated Depreciation on Machine A $18,000 Loss on sale of asset $300 To Machine A $27,000 (Being machine a sold for cash $ 8,700.)

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