O'Callaghan Inc. (OI) is in the highway construction business. Ol's property, plant, and equipment account...
90.2K
Verified Solution
Link Copied!
Question
Accounting
O'Callaghan Inc. (OI) is in the highway construction business. Ol's property, plant, and equipment account includes heavy construction equipment. The following transactions relate to the disposal of two of the company's pieces of equipment Equipment One-Ol decided to dispose of one of its pieces of heavy machinery and replace it with a newer, more efficient model. Ol received $190,000 cash on the sale of the machine. At the date of the sale, the machine had a net book value of $73,000. The original cost of the equipment was $630,000. Equipment Two-Ol recognizes the earth scoop separately from the rest of the piece of equipment, since it is a significant part that needs replacing. The scoop was replaced this year at a cost of $265,000. The scoop was depreciated separately. The net book value of the scoop at the date of replacement was $38,000. Its original cost was $123,000. Required: Provide the journal entry for the two pieces of equipment. (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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
