Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000
Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...
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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
Residual
Estimated
Life
8 years
8 years
Depreciation
(straight line)
$20,250 (6 years)
33,750 (6 years)
48,918 (12 years)
Asset
Cost
Value
Machine A
$ 30,000
$ 3,000
Machine B
49,000
4,000
Machine C
75,500
6,200
17 years
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $9,450 cash.
b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 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.
X Answer is not complete.
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.)
No
Transaction
General Journal
Debit
Credit
A
December 31
Depreciation expense
5,625 O
Accumulated depreciation, Machine B
5,625 O
B
December 31
Cash
2,500 O
Note receivable
7,825 O
Accumulated depreciation, Machine B
39,375 O
Gain on disposal of machine
15,250
X
Equipment (Machine B)
49,000 O
< Required A
Required C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c17525b-9296-4e0b-a652-c3807eddfc2c%2Fb031d8b2-522a-4b0b-ab2a-8edc121a137c%2F5b0cwbp_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
Residual
Estimated
Life
8 years
8 years
Depreciation
(straight line)
$20,250 (6 years)
33,750 (6 years)
48,918 (12 years)
Asset
Cost
Value
Machine A
$ 30,000
$ 3,000
Machine B
49,000
4,000
Machine C
75,500
6,200
17 years
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $9,450 cash.
b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 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.
X Answer is not complete.
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.)
No
Transaction
General Journal
Debit
Credit
A
December 31
Depreciation expense
5,625 O
Accumulated depreciation, Machine B
5,625 O
B
December 31
Cash
2,500 O
Note receivable
7,825 O
Accumulated depreciation, Machine B
39,375 O
Gain on disposal of machine
15,250
X
Equipment (Machine B)
49,000 O
< Required A
Required C >
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