CONNECT CODE F/FINANCIAL ACCOUNTING
6th Edition
ISBN: 9781260685978
Author: PHILLIPS
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 2CP
a)
To determine
To prepare: the
b)
To determine
To prepare: the journal entry related to the disposal of Equipment Bon January 2 of the current year.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts
reflected the following:
Asset
Machine A
Machine B
Original.
Cost
$56,000
15,200
The machines were disposed of in the following ways:
View transaction list
N
a. Machine A: Sold on January 2, for $34,500 cash.
b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal).
No
1
Required:
1.82. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2
3
4
Residual
Value.
$10,500
2,400
Date
January 02
Estimated
Life
View Journal entry worksheet
January 02
January 02
January 02
7 years
5 years.
No Journal Entry Required
Accumulated
Depreciation
(straight-line).
$26,000 (4 years)
7,680 (3 years)
General Journal
Cash
Accumulated Depreciation-Equipment
Gain on…
Please help me
During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts
reflected the following:
Asset
Machine A
Machine B
Original
Cost
$63,000
14,500
6 years
5 years
The machines were disposed of in the following ways:
No
a. Machine A: Sold on January 2, for $39,000 cash.
b. Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal).
1
Required:
1.&2. Prepare the journal entries related to the disposal of Machine A and Machine B on January 2 of the current year. (If no entry
is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2
3
4
Date
January 02
January 02
Residual
Value
$11,300
2,150
January 02
January 02
Estimated
Life
Cash
No Journal Entry Required
General Journal
No Journal Entry Required
Accumulated
Depreciation
(straight-line)
$25,850 (3 years)
7,410 (3 years)
Answer is not complete.
Accumulated Depreciation-Equipment
Equipment
Gain…
Chapter 9 Solutions
CONNECT CODE F/FINANCIAL ACCOUNTING
Ch. 9 - Define long-lived assets. What are the two common...Ch. 9 - Under the cost principle, what amounts should be...Ch. 9 - What is the term for recording costs as assets...Ch. 9 - 4. Waste Management, Inc., regularly incurs costs...Ch. 9 - Distinguish between ordinary repairs and...Ch. 9 - Describe the relationship between the expense...Ch. 9 - Why are different depreciation methods allowed?Ch. 9 - In computing depreciation, three values must be...Ch. 9 - Prob. 9QCh. 9 - After merging with Northwest Airlines, Delta...
Ch. 9 - A local politician claimed, to reduce the...Ch. 9 - What is an asset impairment? How is it accounted...Ch. 9 - What is book value? When equipment is sold for...Ch. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - FedEx Corporation reports the cost of its aircraft...Ch. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - (Supplement 9A) How does depletion affect the...Ch. 9 - (Supplement 9B) Over what period should an...Ch. 9 - Prob. 1MCCh. 9 - Prob. 2MCCh. 9 - Prob. 3MCCh. 9 - A company wishes to report the highest earnings...Ch. 9 - Barber, Inc., depreciates its building on a...Ch. 9 - Thornton Industries purchased a machine on July 1...Ch. 9 - ACME. Inc., uses straight-line depreciation for...Ch. 9 - What assets should be amortized using the...Ch. 9 - Prob. 9MCCh. 9 - The Simon Company and the Allen Company each...Ch. 9 - Classifying Long-Lived Assets and Related Cost...Ch. 9 - Prob. 2MECh. 9 - Prob. 3MECh. 9 - Computing Book Value (Straight-Line Depreciation)...Ch. 9 - Computing Book Value (Units-of-Production...Ch. 9 - Computing Book Value (Double-Declining-Balance...Ch. 9 - Calculating Partial-Year Depreciation Calculate...Ch. 9 - Recording Asset Impairment Losses After recording...Ch. 9 - Recording the Disposal of a Long-Lived Asset...Ch. 9 - Reporting and Recording the Disposal of a...Ch. 9 - Prob. 11MECh. 9 - Prob. 12MECh. 9 - Computing and Evaluating the Fixed Asset Turnover...Ch. 9 - (Supplement 9A) Recording Depletion for a Natural...Ch. 9 - Prob. 15MECh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Determining Financial Statement Effects of an...Ch. 9 - Prob. 4ECh. 9 - Determining Financial Statement Effects of...Ch. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Computing Depreciation under Alternative Methods...Ch. 9 - Prob. 8ECh. 9 - Demonstrating the Effect of Book Value on...Ch. 9 - Evaluating the Impact of Estimated Useful Lives of...Ch. 9 - Calculating the Impact of Estimated Useful Lives...Ch. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Computing and Interpreting the Fixed Asset...Ch. 9 - Computing Depreciation and Book Value for Two...Ch. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Prob. 2CPCh. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Prob. 3PACh. 9 - Prob. 4PACh. 9 - Computing Acquisition Cost and Recording...Ch. 9 - Recording and Interpreting the Disposal of...Ch. 9 - Analyzing and Recording Long-Lived Asset...Ch. 9 - Prob. 4PBCh. 9 - Accounting for Operating Activities (Including...Ch. 9 - Prob. 1SDCCh. 9 - Prob. 2SDCCh. 9 - Ethical Decision Making: A Mini-Case Assume you...Ch. 9 - Critical Thinking: Analyzing the Effects of...Ch. 9 - Prob. 7SDCCh. 9 - Accounting for the Use and Disposal of Long-Lived...
Knowledge Booster
Similar questions
- When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.arrow_forwardBaghibenarrow_forwardDuring the current year, Yost 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 Depreciation Asset Machine A Machine B Original Cost Residual Value Estimated Life $33,000 $3,000 12 years 16,800 10 years Machine C 5,100 17 years 140,000 75,600 (straight line) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,500 cash. $25,000 (10 years) 98,560 (8 years) 49,765 (12 years) b. Machine B: Sold on December 31 for $54,120; received cash, $43,296, and an $10,824 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. P8-5 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b.…arrow_forward
- During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $76,200 $4,200 15 years $62,400 (13 years) Machine B 20,000 2,000 8 years 13,500 (6 years) The machines were disposed of in the following ways: Machine A: Sold on January 2 for $20,000 cash. Machine B: On January 2, 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 on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forwardHow do I solve this for Machine A, B, and C?arrow_forwardplease dont provide answer in an image format thank youarrow_forward
- On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $206,400 and has accumulated depreciation of $185,760. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? a.Equipment, credit, $206,400 b.Gain on Disposal of Asset, credit, $20,640 c.Accumulated Depreciation, debit, $206,400 d.Loss on Disposal of Asset, debit, $185,760arrow_forwardI want answer to the below questionarrow_forwardIngot Land Company owns four trucks dedicated primarily to its landfill business. The company's accounting record indicates the following: Determine the amount of depreciation for each truck during the year.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning