Required information(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 thedisposal of the assets, the accounts reflected the following:AccumulatedOriginalResidualEstimatedLife8 years8 yearsDepreciation(straight line)$20,250 (6 years)33,750 (6 years)48,918 (12 years)AssetCostValueMachine A$ 30,000$ 3,000Machine B49,0004,000Machine C75,5006,20017 yearsThe machines were disposed of during the current year in the following ways:a. Machine A: Sold on January 1 for $9,450 cash.b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 interest-bearing (12 percent) notereceivable 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 salvagecompany removed the machine at no cost.Required:1. Give all journal entries related to the disposal of each machine in the current year.a. Machine A.b. Machine B.c. Machine C.X Answer is not complete.Complete the following questions by preparing worksheet and journal entries given below.Required ARequired BRequired CGive all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)NoTransactionGeneral JournalDebitCreditADecember 31Depreciation expense5,625 OAccumulated depreciation, Machine B5,625 OBDecember 31Cash2,500 ONote receivable7,825 OAccumulated depreciation, Machine B39,375 OGain on disposal of machine15,250XEquipment (Machine B)49,000 O< Required ARequired C >

At the time of sale of a fixed asset, accumulated depreciation is deducted from the original cost of…

Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000

Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 10RE: Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on...

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Required information [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 the disposal of the assets, the accounts reflected the following: Accumulated Original Residual Estimated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Мachine B 73,000 4,000 Machine C 75,600 6,100 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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. Required: 1. Give all journal entries…
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During the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following on January 1 of the current years, prior to the disposal of the assets: Accumulated Depreciation (straight line) $15,750 (7 years) Original Residual Asset Machine A Machine B Machine C Cost $21,000 50,000 Value $3,000 4,000 75,000 3,000 Estimated Life 8 years 10 years 12 years 36,800 (8 years) 60,000 (10 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 of the current year for $5,000 cash. b. Machine B. Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following year, plus 6 percent interest. c. Machine C: Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Required: 1. Prepare all journal entries related to the…
Disposal of Asset During the year to 30 June 20X7, Eugene Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000. What was the profit or loss on disposal, and what journal entries are needed to record the disposal?
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During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $84,200 $9,000 15 years $65,173 (13 years) Machine B 28,000 3,600 8 years 18,300 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $28,000 cash. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 SYD $34,220 $20060 Machine B 8/15/19 81370 21,630 5 SL 29,870 11948 Machine C 7/21/18 67,200 23,500 8 DDB (A) (B) Machine D (C) 225,570 71,070 5 SYD 72,100 (D)
Swifty Industries presents you with the following information.Complete the table for the year ended December 31, 2022. The company depreciates all assets using the half-year convention. (Round answers to 0 decimal places, e.g. 45,892.) Description DatePurchased Cost SalvageValue Lifein Years DepreciationMethod AccumulatedDepreciation to12/31/21 Depreciationfor 2022 Machine A 2/12/20 $146,800 $17,000 10 (a) $34,220 (b) $ Machine B 8/15/19 (c) 21,630 5 SL 29,870 (d) Machine C 7/21/18 67,200 23,500 8 DDB (e) (f) Machine D (g) 225,570 71,070 5 SYD 72,100 (h)
During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation Asset Machine A Machine B Original Cost Residual Value Estimated Life $33,000 $3,000 12 years 16,800 10 years Machine C 5,100 17 years 140,000 75,600 (straight line) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,500 cash. $25,000 (10 years) 98,560 (8 years) 49,765 (12 years) b. Machine B: Sold on December 31 for $54,120; received cash, $43,296, and an $10,824 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. P8-5 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b.…
Asset Disposal During the year June 20x7, Sonia Clown Ltd sold a non-current asset for $36,000. It had been acquired three years ago at a cost of $180,000. At the date of disposal of the asset, the accumulated depreciation was $138,000. What was the profit or loss on disposal, and what journal entries are needed to record the disposal
On 1 January 20X8 Hendrix Co revalued its property to $200,000. Up to the date of the revaluation, the asset had been accounted for at a cost of $160,000, and had accumulated depreciation $40,000. The property had an expected useful life of fifty years from the date of purchase and nil residual value. State the accounting entries required to account for the revaluation in the financial statements of Hendrix Co. Debit or Credit Account title $