Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following: Accumulated Estimated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Value $2,000 3, 200 Asset Cost Life $24,e00 59, 200 Machine A 5 years 14 years Machine B The machines were disposed of In the followlng ways: a. Machine A: This machine was sold on January 1 for $5.750 cash. b. Machine B: On January 1., this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage company at no cost. Required: 1. Prepare the Journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a transaction/event, select "No Journal entry reguired" In the first account field.)
Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following: Accumulated Estimated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Value $2,000 3, 200 Asset Cost Life $24,e00 59, 200 Machine A 5 years 14 years Machine B The machines were disposed of In the followlng ways: a. Machine A: This machine was sold on January 1 for $5.750 cash. b. Machine B: On January 1., this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage company at no cost. Required: 1. Prepare the Journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a transaction/event, select "No Journal entry reguired" In the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Need help with accounting asap
![Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following:
Accumulated
DepreciationI
Original
Cost
$24,000
59,200
Residual
Asset
Machine A
Machine B
Estimated
Life
5 years
14 years
$ 2,000
3,200
$17,600 (4 years)
48,000 (12 years)
The machines were disposed of In the following ways:
a. Machine A This machine was sold on January 1 for $5,750 cash.
b. MachIne B: On January 1, this machine suffered irreparable damage from an accident and was removed Immedlately by a salvage
company at no cost.
Required:
1. Prepare the Journal entries related to the disposal of each machline at the beginnling of the current year. Transaction "a" relates to the
recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a
transaction/event, select "No Journal entry required" In the first account field.)
Machine A - Jan. 1.
Vlaw traneaction list
Journal entry worksheet
2.
Record the entry for disposal of Machine A.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
b.
Record entry
Clear entry
Vew general Jourmal
Machine B - January 1:
Vlew transaction llat
Journal entry worksheet
Record the entry for disposal of Machine B.
Nate: Enter debits before credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046c1bd4-c1c0-4235-911b-a42cad415053%2Fbe639a1a-29f9-4e1d-9544-916db662144d%2Fio95d6h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ly Company disposed of two different assets. On January 1, prlor to disposal of the assets, the accounts reflected the following:
Accumulated
DepreciationI
Original
Cost
$24,000
59,200
Residual
Asset
Machine A
Machine B
Estimated
Life
5 years
14 years
$ 2,000
3,200
$17,600 (4 years)
48,000 (12 years)
The machines were disposed of In the following ways:
a. Machine A This machine was sold on January 1 for $5,750 cash.
b. MachIne B: On January 1, this machine suffered irreparable damage from an accident and was removed Immedlately by a salvage
company at no cost.
Required:
1. Prepare the Journal entries related to the disposal of each machline at the beginnling of the current year. Transaction "a" relates to the
recording of the depreclation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry Is required for a
transaction/event, select "No Journal entry required" In the first account field.)
Machine A - Jan. 1.
Vlaw traneaction list
Journal entry worksheet
2.
Record the entry for disposal of Machine A.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
b.
Record entry
Clear entry
Vew general Jourmal
Machine B - January 1:
Vlew transaction llat
Journal entry worksheet
Record the entry for disposal of Machine B.
Nate: Enter debits before credits.
![Ly Company disposed of two different assets. On January 1. prlor to disposal of the assets, the accounts reflected the following
Accunulated.
Original
Cost
Residual
Asset
Machine A
Machine D
Cstinated
Life
s years
14 years
(stralght-11ne).
$17,600 (4 years)
48,000 (12 years)
ane
59,200
The machines were disposed of in the following ways
a. Machine A This machine was sold on January 1 for $5.750 cash.
b. Machine B: On January 1 this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage
company at no cost:
Requtred:
1. Prepare the journal entries related to the disposal of each machine at the beginnlng of the current year Transaction a" relates to the
recording of the depreclation, and trancaction "b" relates to the recording of the dispogal of the machine. (If no entry Is requlred for a
transaction/event, select " NoJournal entry required" In the first account field.)
Machine A-Jan. 1
Vaw tranasction itat
Journal entry worksheet
Record the depreciation expense.
Note: Enter debs before credits
Transaction
General Journal,
Debit
Credit
Racord entry
Claar entry
Machine B-January 1
Visw tranesction llst
Journal entry worksheet
Record the depreciation expense.
INote: Enterdenits beone.crec/ts
Transaction
General Joumal
Debit
Credit
a.
學](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F046c1bd4-c1c0-4235-911b-a42cad415053%2Fbe639a1a-29f9-4e1d-9544-916db662144d%2F0fna6e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ly Company disposed of two different assets. On January 1. prlor to disposal of the assets, the accounts reflected the following
Accunulated.
Original
Cost
Residual
Asset
Machine A
Machine D
Cstinated
Life
s years
14 years
(stralght-11ne).
$17,600 (4 years)
48,000 (12 years)
ane
59,200
The machines were disposed of in the following ways
a. Machine A This machine was sold on January 1 for $5.750 cash.
b. Machine B: On January 1 this machine suffered Irreparable damage from an accident and was removed Immediately by a salvage
company at no cost:
Requtred:
1. Prepare the journal entries related to the disposal of each machine at the beginnlng of the current year Transaction a" relates to the
recording of the depreclation, and trancaction "b" relates to the recording of the dispogal of the machine. (If no entry Is requlred for a
transaction/event, select " NoJournal entry required" In the first account field.)
Machine A-Jan. 1
Vaw tranasction itat
Journal entry worksheet
Record the depreciation expense.
Note: Enter debs before credits
Transaction
General Journal,
Debit
Credit
Racord entry
Claar entry
Machine B-January 1
Visw tranesction llst
Journal entry worksheet
Record the depreciation expense.
INote: Enterdenits beone.crec/ts
Transaction
General Joumal
Debit
Credit
a.
學
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education