Required information [The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Original Cost Residual Estimated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Asset Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A 4,000 6,100 Machine B 73,000 Machine c 75,600 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries ated to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required C Give all journal entries related to the disposal of Machine C in 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 A B > Record the depreciation of Machine C. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Record entry Clear entry View general journal < Required B Required C
Required information [The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Original Cost Residual Estimated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Asset Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A 4,000 6,100 Machine B 73,000 Machine c 75,600 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries ated to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required C Give all journal entries related to the disposal of Machine C in 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 A B > Record the depreciation of Machine C. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Record entry Clear entry View general journal < Required B Required C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required information
[The following information applies to the questions displayed below.]
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the
disposal of the assets, the accounts reflected the following:
Accumulated
Original
Residual
Estimated
Depreciation
(straight line)
$13,500 (6 years)
55,200 (8 years)
52,125 (12 years)
Asset
Cost
Value
Life
$ 21,000
$ 3,000
8 years
10 years
16 years
Machine A
Мachine B
73,000
4,000
Machine C
75,600
6,100
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $7,100 cash.
b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note
receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage
company removed the machine at no cost.
Required:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Complete the following questions by preparing worksheet and journal entries given below.
Required A
Required B
Required C
Give all journal entries related to the disposal of Machine C in 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
A
B
>
Record the depreciation of Machine C.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
January 01
Record entry
Clear entry
View general Journal
< Required B
Required C>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa4862343-6ded-40b8-97d9-80c4970fbb84%2F4c091432-6465-4095-a34d-c0c3c35730ca%2Fnwduv4j_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the
disposal of the assets, the accounts reflected the following:
Accumulated
Original
Residual
Estimated
Depreciation
(straight line)
$13,500 (6 years)
55,200 (8 years)
52,125 (12 years)
Asset
Cost
Value
Life
$ 21,000
$ 3,000
8 years
10 years
16 years
Machine A
Мachine B
73,000
4,000
Machine C
75,600
6,100
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $7,100 cash.
b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 interest-bearing (12 percent) note
receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage
company removed the machine at no cost.
Required:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Complete the following questions by preparing worksheet and journal entries given below.
Required A
Required B
Required C
Give all journal entries related to the disposal of Machine C in 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
A
B
>
Record the depreciation of Machine C.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
January 01
Record entry
Clear entry
View general Journal
< Required B
Required C>
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