Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [ The following information applies to the questions displayed below. ] During the current year, Yost Company disposed of three different assets. On

Required information
[The following information applies to the questions displayed below.]
During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following:
\table[[Asset,Original Cost,Residual Value,Estimated Life,\table[[Accumulated Depreciation],[(straight line)]]],[Machine A,$30,000,$3,000,6 years,$18,000(4 years)],[Machine B,100,000,12,000,8 years, years)],[Machine C,75,300,5,800,16 years, years)]]
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $11,600 cash.
b. Machine B: Sold on December 31 for $44,000; received cash, $35,200, and an $8,800 interest-bearing (12 percent) note receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost.
Required:
Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C
image text in transcribed

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

Authors: John Stittle, Robert Wearing

1st Edition

1412935024, 9781412935029

More Books

Students also viewed these Accounting questions