Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 9, Problem 9.2PB
Recording and Interpreting the Disposal of Long-Lived Assets
During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:
The machines were disposed of in the following ways:
- a. Machine A: Sold on January 2 for $33,500 cash.
- b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.
Required:
- 1. Give the
journal entry related to the disposal of Machine A on January 2 of the current year. - 2. Give the journal entry related to the disposal of Machine B on January 2 of the current year.
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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…
How do I solve this for Machine A, B, and C?
Chapter 9 Solutions
Fundamentals of Financial Accounting
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