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) 55,200 (8 years) 52,125 (12 years) Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Machine B 73,000 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Journal entry worksheet
A
в
>
Record the disposal of Machine A.
Note: Enter debits before credits.
Transaction
Ger
| Jou
Debit
Credit
January 01
Record entry
Clear entry
View general journal
Transcribed Image Text:Journal entry worksheet A в > Record the disposal of Machine A. Note: Enter debits before credits. Transaction Ger | Jou Debit Credit January 01 Record entry Clear entry View general journal
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
Estimated
Depreciation
(straight line)
$13,500 (6 years)
55,200 (8 years)
52,125 (12 years)
Original
Residual
Asset
Cost
Value
Life
$ 21,000
$ 3,000
8 years
10 years
16 years
Machine A
4,000
6,100
Machine B
73,000
Machine C
75,600
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.
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 Estimated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Original Residual Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A 4,000 6,100 Machine B 73,000 Machine C 75,600 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.
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