PA9-2 (Algo) Recording and Interpreting the Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Estimated Life Residual Value $31,000 $3,100 60,200 3,500 The machines were disposed of in the following ways: Asset Machine A Machine B 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). View transaction list 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.) Journal entry worksheet < 1 2 3 6 years 15 years Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) 4 Note: Enter debits before credits. Record the current year depreciation for Machine A prior to disposal.
PA9-2 (Algo) Recording and Interpreting the Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Estimated Life Residual Value $31,000 $3,100 60,200 3,500 The machines were disposed of in the following ways: Asset Machine A Machine B 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). View transaction list 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.) Journal entry worksheet < 1 2 3 6 years 15 years Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) 4 Note: Enter debits before credits. Record the current year depreciation for Machine A prior to disposal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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8
![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
$31,000
Estimated
Life
6 years
(straight-line)
$23,250 (5 years)
60,200
15 years
$45,360 (12 years)
The machines were disposed of in the following ways:
Asset
Machine A
Machine B
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.)
View transaction list
Journal entry worksheet
<
Residual
Value
$3,100
3,500
1
2
3 4
Record the current year depreciation for Machine A prior to disposal.
Note: Enter debits before credits.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11a64bba-74c0-4fd7-b16b-3d8fff0a6ac2%2F67d742cc-2567-4f21-b65e-7f36fb832a62%2Fy0wwuunf_processed.jpeg&w=3840&q=75)
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
$31,000
Estimated
Life
6 years
(straight-line)
$23,250 (5 years)
60,200
15 years
$45,360 (12 years)
The machines were disposed of in the following ways:
Asset
Machine A
Machine B
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.)
View transaction list
Journal entry worksheet
<
Residual
Value
$3,100
3,500
1
2
3 4
Record the current year depreciation for Machine A prior to disposal.
Note: Enter debits before credits.
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