Homework Help is Here – Start Your Trial Now!
Business
Accounting
A MACHINE COSTING $171,600 WAS DESTROYED WHEN IT CAUGHT FIRE. AT THE DATE OF THE FIRE, THE ACCUMULATED DEPRECIATION ON THE MACHINE WAS $84,000. AN INSURANCE CHECK FOR $203,800 WAS RECEIVED BASED ON THE REPLACEMENT COST OF THE MACHINE. THE ENTRY TO RECORD THE INSURANCE PROCEEDS AND THE DISPOSITION OF THE MACHINE WILL INCLUDE A: A) GAIN ON DISPOSAL OF $116,200. B) CREDIT TO THE ACCOUNT FOR $119,800. EQUIPMENT C) GAIN ON DISPOSAL OF $32,200. D) CREDIT TO THE ACCUMULATED DEPRECIATION ACCOUNT FOR $84,000.

A MACHINE COSTING $171,600 WAS DESTROYED WHEN IT CAUGHT FIRE. AT THE DATE OF THE FIRE, THE ACCUMULATED DEPRECIATION ON THE MACHINE WAS $84,000. AN INSURANCE CHECK FOR $203,800 WAS RECEIVED BASED ON THE REPLACEMENT COST OF THE MACHINE. THE ENTRY TO RECORD THE INSURANCE PROCEEDS AND THE DISPOSITION OF THE MACHINE WILL INCLUDE A: A) GAIN ON DISPOSAL OF $116,200. B) CREDIT TO THE ACCOUNT FOR $119,800. EQUIPMENT C) GAIN ON DISPOSAL OF $32,200. D) CREDIT TO THE ACCUMULATED DEPRECIATION ACCOUNT FOR $84,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Want correct answer

A MACHINE COSTING $171,600 WAS DESTROYED WHEN IT CAUGHT FIRE. AT THE DATE OF THE FIRE, THE ACCUMULATED DEPRECIATION ON THE MACHINE WAS $84,000. AN INSURANCE CHECK FOR $203,800 WAS RECEIVED BASED ON THE REPLACEMENT COST OF THE MACHINE. THE ENTRY TO RECORD THE INSURANCE PROCEEDS AND THE DISPOSITION OF THE MACHINE WILL INCLUDE A: A) GAIN ON DISPOSAL OF $116,200. B) CREDIT TO THE ACCOUNT FOR $119,800. EQUIPMENT C) GAIN ON DISPOSAL OF $32,200. D) CREDIT TO THE ACCUMULATED DEPRECIATION ACCOUNT FOR $84,000.
Transcribed Image Text:A MACHINE COSTING $171,600 WAS DESTROYED WHEN IT CAUGHT FIRE. AT THE DATE OF THE FIRE, THE ACCUMULATED DEPRECIATION ON THE MACHINE WAS $84,000. AN INSURANCE CHECK FOR $203,800 WAS RECEIVED BASED ON THE REPLACEMENT COST OF THE MACHINE. THE ENTRY TO RECORD THE INSURANCE PROCEEDS AND THE DISPOSITION OF THE MACHINE WILL INCLUDE A: A) GAIN ON DISPOSAL OF $116,200. B) CREDIT TO THE ACCOUNT FOR $119,800. EQUIPMENT C) GAIN ON DISPOSAL OF $32,200. D) CREDIT TO THE ACCUMULATED DEPRECIATION ACCOUNT FOR $84,000.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS