Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:   Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $ 35,000   $ 3,800   6 years $ 26,000 (5 years) Machine B   67,200     4,200   12 years   47,250 (9 years)     The machines were disposed of in the following ways:   Machine A: Sold on January 1 for $9,200 cash. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).   Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:

 

Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line)
Machine A $ 35,000   $ 3,800   6 years $ 26,000 (5 years)
Machine B   67,200     4,200   12 years   47,250 (9 years)
 

 

The machines were disposed of in the following ways:

 

  1. Machine A: Sold on January 1 for $9,200 cash.
  2. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

 

Required:

  1. 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

 

 

 

 

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