Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) Original Cost $36,000 72,200 Residual Value Estimated Life $4,300 5 years $25,360 (4 years) 5,000 15 years $53,760 (12 years) The machines were disposed of in the following ways: Asset Machine A Machine B a. Machine A: Sold on January 1 for $11,000 cash. b. Machine B: On January 1, 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 at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Date Note: Enter debits before credits. 3 Record the current year depreciation for Machine A prior to disposal. 4 General Journal Debit Credit >

Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) Original Cost $36,000 72,200 Residual Value Estimated Life $4,300 5 years $25,360 (4 years) 5,000 15 years $53,760 (12 years) The machines were disposed of in the following ways: Asset Machine A Machine B a. Machine A: Sold on January 1 for $11,000 cash. b. Machine B: On January 1, 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 at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 Date Note: Enter debits before credits. 3 Record the current year depreciation for Machine A prior to disposal. 4 General Journal Debit Credit >

Name: Ly Company disposed of two different assets. On January 1, prior to t
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Description: Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:Accumulated Depreciation(straight-line)OriginalCost$36,00072,200Residual Value Estimated Life$4,3005 years$25,360 (4 years)5,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ly 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 $ 35,000 $ 3,800 6 years $ 26,000 (5 years) Machine B 67,200 4,200 12 years 47,250 (9 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $9,200 cash. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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