Ly Company disposed of two different assets. On January 1, prior to their dispos

Question

Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following OriginalResidual Estimated Asset Cost Life Value Machine A $30,000 $3,000 Machine B59.200 3,200 5 years 14 yoars 21,600 (4 years) 44,000 (11 years) The machines were disposed of in the following ways a. Machine A: Sold on January 1 for $9,000 cash b. Machine 8: On January 1, this machine sutlered irreparable damage f from an accldent and was removed immediately by a salvage company at no cost Required 1.&2. Prepare the jounal entry related to the disposal of Machine A and B at the beginning of the urrant year. (If no entry is required for a transactionlevent the first account field.) select "No Journall Entry Required" in View transaction list Journal entry worksheet Record the current year depreciation for Machine A prior to disposal. Note: Enter d debits before credits. January 01

Explanation / Answer

Answer

Date

Accounts Title

Debit

Credit

01-Jan

No Entry

[as the asset has not been used for any period of time in this year as is sold on 1 Jan only]

(machinery retired)

01-Jan

Cash

$             9,000.00

Accumulated Depreciation - Machine (A)

$           21,600.00

Machine A

$         30,000.00

Gain on Sale

$               600.00

(Machinery A Sold)

01-Jan

No Entry

[as the asset has not been used for any period of time in this year as is sold on 1 Jan only]

(machinery retired)

01-Jan

Accumulated Depreciation - Machine (A)

$           44,000.00

Loss on Sale

$           15,200.00

Machine B

$         59,200.00

(Machinery B disposed off)

Date

Accounts Title

Debit

Credit

01-Jan

No Entry

[as the asset has not been used for any period of time in this year as is sold on 1 Jan only]

(machinery retired)

01-Jan

Cash

$             9,000.00

Accumulated Depreciation - Machine (A)

$           21,600.00

Machine A

$         30,000.00

Gain on Sale

$               600.00

(Machinery A Sold)

01-Jan

No Entry

[as the asset has not been used for any period of time in this year as is sold on 1 Jan only]

(machinery retired)

01-Jan

Accumulated Depreciation - Machine (A)

$           44,000.00

Loss on Sale

$           15,200.00

Machine B

$         59,200.00

(Machinery B disposed off)

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.