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During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: Accumulated Original Residual
During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: Accumulated Original Residual Estimated Depreciation (straight line) Asset Cost Value Life Machine A 27000 $3,000 6 years $16,000 (4 years) 48,750 (6 years) Machine B 69,000 4,000 8 years Machine C 75,800 5,000 17 years 49,976 (12 years) The machines were disposed of in the following ways: Machine A: Sold on January 1, 2015, for $10,600 cash. Machine B: Sold on December 31, 2015, for $12,625; received cash, $2,300, and a $10,325 interest- bearing (12 percent) note receivable due at the end of 12 months. Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost. a. b. c. Required 1. Give all journal entries related to the disposal of each machine in 2015. (If no entry is required for a transactionlevent, set "No journal entry required" in the first account field.) a. Machine A View transaction list Journal entry worksheet Record the depreciation of Machine A Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal
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