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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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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
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
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