90.2K

Verified Solution

Link Copied!

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: Estimated Life Asset Machine A Machine B Machine C Original Cost $ 33,000 53,000 75,700 Residual Value $ 3,000 4,000 5,600 Accumulated Depreciation (straight line) $24,000 (8 years) 39,200 (8 years) 49,482 (12 years) 10 years 10 years 17 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $8,600 cash. b. Machine B: Sold on December 31 for $9,500; received cash, $2,300, and a $7,200 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 Give all journal entries related to the disposal of Machine A 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 Record the depreciation of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01

Answer & Explanation Solved by verified expert

See Answer