- Ly Company Disposed Of Two Different Assets On January 1 Prior To Their Disposal The Accounts Reflected The Following 1 (323.5 KiB) Viewed 11 times
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation Original Cost $33,000 Estimated Life (straight-line) $22,050 (3 years) 65,200 $47,850 (11 years) Asset Machine A Machine B Residual Value $3,600 4,300 4 years 14 years The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $11,700 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 January 01 3 Record the current year depreciation for Machine A prior to disposal. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal
View transaction list Journal entry worksheet 1 2 Date January 01 3 Machine A: Sold on January 1 for $11,700 cash. Record the transaction. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal >
View transaction list Journal entry worksheet < 1 2 3 Record the current year depreciation for Machine B prior to disposal. Note: Enter debits before credits. Date January 01 Record entry 4 General Journal Clear entry Debit Credit View general journal >
View transaction list Journal entry worksheet < 1 2 Date January 01 3 Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Note: Enter debits before credits. Record entry 4 General Journal Clear entry Debit Credit View general journal