Baghiben 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:AssetMachine AMachine BMachine COriginalCost$21,00050,00075,000No1ResidualValueDateJan. 1$3,0004,0003,000EstimatedLifeThe 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.18 years10 years12 yearsRequired: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.)Accumulated Depreciation(straight line)$15,750 (7 years)36,800 (8 years)60,000 (10 years)Answer is not complete.General JournalCashAccumulated depreciation, machine AEquipment-Machine AGain on disposal of machineXDebitCredit

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

Required: 1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.) No 1 Date Jan. 1 Answer is not complete. General Journal Cash Accumulated depreciation, machine A Equipment-Machine A Gain on disposal of machine 0000 Debit Credit

Required: 1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.) No 1 Date Jan. 1 Answer is not complete. General Journal Cash Accumulated depreciation, machine A Equipment-Machine A Gain on disposal of machine 0000 Debit Credit

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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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, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original. Cost $56,000 15,200 The machines were disposed of in the following ways: View transaction list N a. Machine A: Sold on January 2, for $34,500 cash. b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). No 1 Required: 1.82. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2 3 4 Residual Value. $10,500 2,400 Date January 02 Estimated Life View Journal entry worksheet January 02 January 02 January 02 7 years 5 years. No Journal Entry Required Accumulated Depreciation (straight-line). $26,000 (4 years) 7,680 (3 years) General Journal Cash Accumulated Depreciation-Equipment Gain on…
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.)
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 >
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…
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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: Asset Machine A Machine B Machine C Estimated Life 8 years 10 years 15 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $5,000 cash. b. Machine B: Sold on December 31 for $30,500; received cash, $22,500, and an $8,000 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. Original Cost Residual Value $21,000 120,000 85,000 Accumulated Depreciation (straight line) $15,750 (7 years) 84,800 (8 years) 64,000 (12 years) $3,000 14,000 5,000 equired: Give all journal entries related to the disposal of each machine in the current year. 2. Select the accounting rationale for…
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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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…
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.