6 Entries:

Depreciation expense of machine A

Record Disposal of machine A

Record depreciation expense of machine B

Record Disposal of machine B

Record depreciation expense of machine C

Record Disposal of machine C

During 2018, Ct Company disposed of three different assets. On January 1, 2018, prior to the disposal of the assets, the accounts reflected the following: Original Asset Cost Machine A $20,000 Machine B 41,000 Machine C 75,000 Accumulated Residual Estimated Depreciation (straight Value Life line) $2,000 8 years $ 13,500 (6 years) 4,000 29,600 (8 years) 3,000 12 years 60,000 (10 years) 10 years The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2018, for $7,200 cash. b. Machine B: Sold on April 1, 2018, for $8,500; received cash, $2,500, and a note receivable for $6,000, due on March 31, 2019, plus 6 percent interest. C. Machine C: Suffered irreparable damage from an accident on July 2, 2018. On July 10, 2018, a salvage company removed the machine immediately at no cost. The machine was insured, and $18,000 cash was collected from the insurance company. Journal entry worksheet 1 2 3 4 5 6 > Record depreciation expense of machine A. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 1, 2018 Record entry Clear entry View general journal