Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 25,050 $ 2,300 5 years $ 18,200 (4 years) Machine B 65,600 3,350 15 years 53,950 (13 years) The machines were disposed of in the following ways: Machine A: This machine was sold on January 1 for $6, 140 cash. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 25,050 $ 2,300 5 years $ 18,200 (4 years) Machine B 65,600 3,350 15 years 53,950 (13 years) The machines were disposed of in the following ways: Machine A: This machine was sold on January 1 for $6, 140 cash. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Name: None Ly Company disposed of two different assets. On January 1, prior
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Description: None Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected thefollowing: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $25,050 $ 2,300

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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