During the current year, Merkley 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: Accumulated Original Residual Estimated Depreciation (straight line) $13,500 (6 years) Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Machine B 73,000 55,200 (8 years) 52,125 (12 years) 4,000 Machine C 75,600 6,100 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C.
During the current year, Merkley 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: Accumulated Original Residual Estimated Depreciation (straight line) $13,500 (6 years) Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Machine B 73,000 55,200 (8 years) 52,125 (12 years) 4,000 Machine C 75,600 6,100 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
During the current year, Merkley 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:
Accumulated
Original
Depreciation
(straight line)
$13,500 (6 years)
55,200 (8 years)
Residual
Estimated
Asset
Cost
Value
Life
$ 21,000
$ 3,000
4,000
8 years
10 years
Machine A
Machine B
73,000
Machine C
75,600
6,100
16 years
52,125 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $7,100 cash.
b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Complete the following questions by preparing worksheet and journal entries given below.
Required A
Required B
Required C
Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
A
>
Record the disposal of Machine B.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
December 31
Record entry
Clear entry
View general Journal
< Required A
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4862343-6ded-40b8-97d9-80c4970fbb84%2F666c57ce-5e11-4513-9709-fe6e0e0e5107%2Fseruwoj_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
During the current year, Merkley 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:
Accumulated
Original
Depreciation
(straight line)
$13,500 (6 years)
55,200 (8 years)
Residual
Estimated
Asset
Cost
Value
Life
$ 21,000
$ 3,000
4,000
8 years
10 years
Machine A
Machine B
73,000
Machine C
75,600
6,100
16 years
52,125 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $7,100 cash.
b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Complete the following questions by preparing worksheet and journal entries given below.
Required A
Required B
Required C
Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event, select "No
journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
A
>
Record the disposal of Machine B.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
December 31
Record entry
Clear entry
View general Journal
< Required A
Required C >
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