Accumulated Depreciation (straight-line) $64,220 (13 years) 15,900 (6 years) Ori

Question

Accumulated Depreciation (straight-line) $64,220 (13 years) 15,900 (6 years) Original Residual Estimated Life 15 years 8 years Cost Asset Machine A $80,200 Machine B 24,000 Value $6,100 2,800 The machines were disposed of in the following ways a. Machine A: Sold on January 2 for $24,000 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. & 2. Prepare the journal entries related to the disposal of Machine A and 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.) 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 View transaction list Journal entry worksheet 2 Record the disposal of Machine B due to irreparable damage from an accident. Note: Enter debits before credits Date General Journal Debit Credit Jan 02

Explanation / Answer

b) Journal entry :

Date accounts & explanation debit credit Acccumlated depreciation 15900 Loss on disposal of machine 8100      Machine B 24000 (To record disposal of machine)

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