PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Residual Value Estimated Life 6 years $31,000 60,200 $3,100 3,500 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) a. Machine A: Sold on January 1 for $8,700 cash. b. Machine B: On January 1, this machine was scrapped with 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.)
PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Residual Value Estimated Life 6 years $31,000 60,200 $3,100 3,500 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) a. Machine A: Sold on January 1 for $8,700 cash. b. Machine B: On January 1, this machine was scrapped with 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5]
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:
Original
Cost
Accumulated Depreciation
(straight-line)
$23,250 (5 years)
$45,360 (12 years)
Asset
Machine A
Machine B
years
$31,000
60,200
15 years
The machines were disposed of in the following ways:
a. Machine A: Sold on January 1 for $8,700 cash.
b. Machine B: On January 1, this machine was scrapped with 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.)
Mc
View transaction list
Residual Value Estimated Life
$3,100
3,500
Journal entry worksheet
<
1
2
3
4
Record the current year depreciation for Machine A prior to disposal.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
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Transcribed Image Text:PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5]
Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:
Original
Cost
Accumulated Depreciation
(straight-line)
$23,250 (5 years)
$45,360 (12 years)
Asset
Machine A
Machine B
years
$31,000
60,200
15 years
The machines were disposed of in the following ways:
a. Machine A: Sold on January 1 for $8,700 cash.
b. Machine B: On January 1, this machine was scrapped with 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.)
Mc
View transaction list
Residual Value Estimated Life
$3,100
3,500
Journal entry worksheet
<
1
2
3
4
Record the current year depreciation for Machine A prior to disposal.
Note: Enter debits before credits.
Date
January 01
General Journal
Debit
Credit
>
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