Can you please help me with these question parts, please? I tried to, but I coul
ID: 2410050 • Letter: C
Question
Can you please help me with these question parts, please? I tried to, but I couldn’t. (Please, type the answers up, so it becomes more clear for me) M9-9 Recording the Disposal of a Long-Lived Asset [LO 9-5] IThe following information applies to the questions displayed below The following are the transactions of Morrell Corporation: a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,760 and their Accumulated Depreciation was $4760. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,520.Explanation / Answer
Transaction General Journal Debit Credit (a) Accumulated Depreciation $ 4,760 Computer $ 4,760 In this entry we have just reversed their balances to remove it from records. (b) Accumulated Depreciation $3,520 Loss on disposal of assets $1,240 Computer $ 4,760 In this entry since there is book value of $1240 but nothing is realised so its our loss on disposal.