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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 followin Accumulated Depreciation (straight-line) $22,800 (4 years) $48,720 (12 years) Original Cost $32,000 5 years 64,200 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Residual Value $3,500 3,300 Estimated Life a. Machine A: Sold on January 1 for $9,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal).

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 followin Accumulated Depreciation (straight-line) $22,800 (4 years) $48,720 (12 years) Original Cost $32,000 5 years 64,200 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Residual Value $3,500 3,300 Estimated Life a. Machine A: Sold on January 1 for $9,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal).

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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Journal entry worksheet Machine A: Sold on January 1 for $9,900 cash. Record the transaction. Date January 01 2 Note: Enter debits before credits. Record entry 3 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of PPE General Journal Note: Enter debits before credits. Record entry Journal entry worksheet Clear entry 4 Date General Journal January 01 Accumulated Depreciation-Equipment Loss on Disposal of PPE Equipment Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Debit Clear entry 9,900 View general journal Credit Debit Credit View general journal >
Transcribed Image Text:Journal entry worksheet Machine A: Sold on January 1 for $9,900 cash. Record the transaction. Date January 01 2 Note: Enter debits before credits. Record entry 3 Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal of PPE General Journal Note: Enter debits before credits. Record entry Journal entry worksheet Clear entry 4 Date General Journal January 01 Accumulated Depreciation-Equipment Loss on Disposal of PPE Equipment Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Debit Clear entry 9,900 View general journal Credit Debit Credit View general journal >
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: Accumulated Depreciation Original Cost $32,000 64,200 The machines were disposed of in the following ways: Asset Machine A Machine B Residual Value $3,500 3,300 View transaction list Estimated Life 5 years 15 years a. Machine A: Sold on January 1 for $9,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Journal entry worksheet (straight-line) $22,800 (4 years) $48,720 (12 years) 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.) Machine A: Sold on January 1 for $9,900 cash. Record the transaction.
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: Accumulated Depreciation Original Cost $32,000 64,200 The machines were disposed of in the following ways: Asset Machine A Machine B Residual Value $3,500 3,300 View transaction list Estimated Life 5 years 15 years a. Machine A: Sold on January 1 for $9,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Journal entry worksheet (straight-line) $22,800 (4 years) $48,720 (12 years) 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.) Machine A: Sold on January 1 for $9,900 cash. Record the transaction.
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