Prepare the journal entries needed to record the asset disposal on June 1, of the current year. Hint: First record the update for depreciation expense To undere deprec Account Name Debit Credit Record the journal entries if the equipment were abandoned zero fair value) on June 1. of the current year. int: First record the update for depreciation expense. Account Name Deb Credit
Prepare the journal entries needed to record the asset disposal on June 1, of the current year. Hint: First record the update for depreciation expense To undere deprec Account Name Debit Credit Record the journal entries if the equipment were abandoned zero fair value) on June 1. of the current year. int: First record the update for depreciation expense. Account Name Deb Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
am. 116.
Transcribed Image Text:Account Name
Manchester Company sells equipment on June 1 of the current year for $361,400 cash. Manchester incurred $2,080 of removal and selling costs on disposal. The equipment cost $650,000 when it was purchased on January 2, approximately three years and five months earlier. Its estimated residual value and useful life were $104,000 and 10 years, respectively. Manchester uses straight-line depreciation and
records annual depreciation on each December 31.
a. Prepare the journal entries needed to record the asset disposal on June 1, of the current year.
Hint: First record the update for depreciation expense.
To update depreciation.
To record the disposal of equipment
Debit
Credit
0
0
0
0
0
0
0
0
0
0
0
0
b. Record the journal entries if the equipment were abandoned (zero fair value) on June 1, of the current year.
Hint: First record the update for depreciation expense.
Account Name
To update depreciation.
To record the disposal of equipment
< <
Debit
Credit
0
0
0
0
0
0
0
0
0
0
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