Required: 1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.) No 1 Date Jan. 1 Answer is not complete. General Journal Cash Accumulated depreciation, machine A Equipment-Machine A Gain on disposal of machine 0000 Debit Credit
Required: 1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.) No 1 Date Jan. 1 Answer is not complete. General Journal Cash Accumulated depreciation, machine A Equipment-Machine A Gain on disposal of machine 0000 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Baghiben
Transcribed Image Text:During the current year, Fortini Company disposed of three different assets. The company's accounts reflected the following on
January 1 of the current years, prior to the disposal of the assets:
Asset
Machine A
Machine B
Machine C
Original
Cost
$21,000
50,000
75,000
No
1
Residual
Value
Date
Jan. 1
$3,000
4,000
3,000
Estimated
Life
The machines were disposed of in the following ways:
a. Machine A: Sold on January 1 of the current year for $5,000 cash.
b. Machine B. Sold on April 1 for $10,500; received cash, $2,500, and a note receivable for $8,000, due on March 31 of the following
year, plus 6 percent interest.
c. Machine C. Suffered irreparable damage from an accident on July 2. On July 10, a salvage company removed the machine at no
cost. The machine was insured, and $18,000 cash was collected from the insurance company.
18 years
10 years
12 years
Required:
1. Prepare all journal entries related to the disposal of each machine in the current year. (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field. Round the final answer to nearest whole dollar.)
Accumulated Depreciation
(straight line)
$15,750 (7 years)
36,800 (8 years)
60,000 (10 years)
Answer is not complete.
General Journal
Cash
Accumulated depreciation, machine A
Equipment-Machine A
Gain on disposal of machine
X
Debit
Credit
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