During the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following onJanuary 1 of the current years, prior to the disposal of the assets:Accumulated Depreciation(straight line)$15,750 (7 years)Original ResidualAssetMachine AMachine BMachine CCost$21,00050,000Value$3,0004,00075,0003,000EstimatedLife8 years10 years12 years36,800 (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 followingyear, 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 nocost. 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 each machine in the current year. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.)

Journal refers to a chronological record of financial transactions of a business. This is where…

Original Residual Asset Cost ine A $21,000 Value $3,000 Estimated Life Accumulated Depreciation (straight line) 8 years $15,750 (7 years) ine B 50,000 4,000 10 years Fine C 75,000 3,000 12 years 36,800 (8 years) 60,000 (10 years) achines were disposed of in the following ways: chine A: Sold on January 1 of the current year for $5,000 cash. chine & Sold on April 1 for $10.500: received cash $2.500 and note receivable fo

Original Residual Asset Cost ine A $21,000 Value $3,000 Estimated Life Accumulated Depreciation (straight line) 8 years $15,750 (7 years) ine B 50,000 4,000 10 years Fine C 75,000 3,000 12 years 36,800 (8 years) 60,000 (10 years) achines were disposed of in the following ways: chine A: Sold on January 1 of the current year for $5,000 cash. chine & Sold on April 1 for $10.500: received cash $2.500 and note receivable fo

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 2RE: Akron Incorporated purchased an asset at the beginning of Year 1 for 375,000. The estimated residual...

See similar textbooks

Similar questions

Assume the same information as in RE11-3, except that Albany Corporation purchased the asset on April 1, Year 1. Calculate the depreciation for Year 1 and Year 2 using the double-declining-balance method. Round to the nearest dollar.
Albany Corporation purchased equipment at the beginning of Year 1 for 75,000. The asset does not have a residual value and is estimated to be in service for 8 years. Calculate the depreciation expense for Years 1 and 2 using the double-declining-balance method. Round to the nearest dollar.
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…
Help me
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 Life 8 years 8 years Depreciation (straight line) $20,250 (6 years) 33,750 (6 years) 48,918 (12 years) Asset Cost Value Machine A $ 30,000 $ 3,000 Machine B 49,000 4,000 Machine C 75,500 6,200 17 years The 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) 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 related…
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 $
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 $76,200 $4,200 15 years $62,400 (13 years) Machine B 20,000 2,000 8 years 13,500 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $20,000 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.)
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.…
Help me please
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?
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.)
Help me please