CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5]

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Nicoles Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $16,500. The estimated useful life was five years and the residual value was $500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,450 hours; year 2, 2,350 hours; year 3, 2,100 hours; year 4, 2,100 hours; and year 5, 1,000 hours.

CC9-1 (Algo) Part 2

2. Assume NGS sold the hydrotherapy tub system for $4,950 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.)

(this is the format for each entry

transaction #

general journal

debit

credit