During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of thecurrent year, prior to their disposal, the asset accounts reflected the following:AssetMachine AMachine BMachine Ca. Machine A.b. Machine B.c. Machine C.The machines were disposed of during the current year in the following ways:a. Machine A: Sold on January 1 for $6,750 cash.b. Machine B: Sold on December 31 for $8,000; received cash, $2,000, and a $6,000 interest-bearing (10 percent) notereceivable due at the end of 12 months.c. Machine C: On January 1, this machine suffered irreparable damage from an accident and was scrapped.Required ARequired:1. Give all journal entries related to the disposal of each machine in the current year.Original Cost Residual Value$24,00016,50059,200Complete the following questions by preparing worksheet and journal entries given below.View transaction listRequired B Required C1Journal entry worksheetGive all journal entries related to the disposal of Machine A in the current year.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.2DateJanuary 01$2,0005,0003,200Record the depreciation of Machine A.Note: Enter debits before credits.Record entryEstimated Life5 years20 years14 yearsAccumulated Depreciation(straight line)$17,600 (4 years)4,025 (7 years)48,000 (12 years).General JournalClear entryDebitCreditView general journal> Journal entry worksheet12Record the disposal of Machine A.Note: Enter debits before credits.DateJanuary 01Record entryGeneral JournalClear entryDebitCreditView general journal>

Name: During the current year ended December 31, Rank Company disposed of t
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Description: During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of thecurrent year, prior to their disposal, the asset accounts reflected the following:AssetMachine AMachine BMachine Ca. Machine A.b. Machine

Assets are the resources owned by the company. They are acquired with an intention to sell or to…

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During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the asset accounts reflected the following: Asset Machine A Machine B Machine C Original Cost Residual Value Estimated Life $24,000 5 years 16,500 20 years 59,200 14 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $6,750 cash. b. Machine B: Sold on December 31 for $8,000; received cash, $2,000, and a $6,000 interest-bearing (10 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident and was scrapped. Accumulated Depreciation (straight line) $17,600 (4 years) 4,025 (7 years) 48,000 (12 years) $2,000 5,000 3,200 Required: 1. Give all journal entries related to the disposal of each machine in the current year.

During the current year ended December 31, Rank Company disposed of three different assets. On January 1 of the current year, prior to their disposal, the asset accounts reflected the following: Asset Machine A Machine B Machine C Original Cost Residual Value Estimated Life $24,000 5 years 16,500 20 years 59,200 14 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $6,750 cash. b. Machine B: Sold on December 31 for $8,000; received cash, $2,000, and a $6,000 interest-bearing (10 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident and was scrapped. Accumulated Depreciation (straight line) $17,600 (4 years) 4,025 (7 years) 48,000 (12 years) $2,000 5,000 3,200 Required: 1. Give all journal entries related to the disposal of each machine in the current year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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