7.14 Alpha sells machine B for $50,000 cash on 30 April 20X4. Machine B cost $100,000 when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record the disposal of machine B? DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) DEBIT Cash CREDIT Non-current assets - cost $35,000 $15,000 $50,000 $100,000 DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) $65,000 $35,000 CREDIT Non-current assets – cost $100,000 C DEBIT Accumulated depreciation $35,000 $50,000 $65,000 DEBIT Cash CREDIT Non-current assets CREDIT Profit on disposal (SPL) $20,000 DEBIT Non-current assets DEBIT Accumulated depreciation $65,000 $35,000 $50,000 CREDIT Cash CREDIT Profit on disposal (SPL) $50,000
7.14 Alpha sells machine B for $50,000 cash on 30 April 20X4. Machine B cost $100,000 when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record the disposal of machine B? DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) DEBIT Cash CREDIT Non-current assets - cost $35,000 $15,000 $50,000 $100,000 DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) $65,000 $35,000 CREDIT Non-current assets – cost $100,000 C DEBIT Accumulated depreciation $35,000 $50,000 $65,000 DEBIT Cash CREDIT Non-current assets CREDIT Profit on disposal (SPL) $20,000 DEBIT Non-current assets DEBIT Accumulated depreciation $65,000 $35,000 $50,000 CREDIT Cash CREDIT Profit on disposal (SPL) $50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Could you explain the theory behind this answer please I dont understand where the value come from.
Transcribed Image Text:7.14 Alpha sells machine B for $50,000 cash on 30 April 20X4. Machine B cost $100,000 when it was
purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries
to record the disposal of machine B?
DEBIT Accumulated depreciation
DEBIT Loss on disposal (SPL)
DEBIT Cash
CREDIT Non-current assets - cost
$35,000
$15,000
$50,000
$100,000
DEBIT Accumulated depreciation
DEBIT Loss on disposal (SPL)
$65,000
$35,000
CREDIT Non-current assets – cost
$100,000
C
DEBIT Accumulated depreciation
$35,000
$50,000
$65,000
DEBIT Cash
CREDIT Non-current assets
CREDIT Profit on disposal (SPL)
$20,000
DEBIT Non-current assets
DEBIT Accumulated depreciation
$65,000
$35,000
$50,000
CREDIT Cash
CREDIT Profit on disposal (SPL)
$50,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education