Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Asset Original Residual Cost

image text in transcribedimage text in transcribedimage text in transcribed Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Asset Original Residual Cost 75,200 Value $3,500 3,950 Estimated Life 5 years 15 years Machine A $29,250 Machine B Accumulated Depreciation (straight-line) $20,600 (4 years) 61,750 (13 years) The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1 for $7,700 cash. b. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1: View transaction list Journal entry worksheet 1 2 Record the entry for depreciation expense. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal Machine B January 1: View transaction list Journal entry worksheet 1 2 Record the entry for depreciation expense. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Information for Decisions

Authors: John J. Wild

8th edition

125953300X, 978-1259533006

More Books

Students also viewed these Accounting questions