Record the journal entries for Depreciation and Disposal each machine . Required information[The following information applies to the questions displayed below.]During 2015, Merkley Company disposed of three different assets. On January 1, 2015,prior to their disposal, the accounts reflected the following:AccumulatedDepreciationLifeAssetMachineOriginal Residual EstimatedCost Value36,000 3,000$(straight line)26,400 (8 years)$10 years$Machine45,000 4,00030,750 (6 years)8 yearsMachine75,500 6,70051,600 (12 years)16 yearsCThe machines were disposed of in the following ways:a. Machine A: Sold on January 1, 2015, for $9,000 cash.b. Machine B: Sold on December 31, 2015, for $9,725; received cash, $2,300, and a$7,425 interest-bearing (12 percent) note receivable due at the end of 12 months.c. Machine C: On January 1, 2015, this machine suffered irreparable damage from anaccident. On January 10, 2015, a salvage company removed the machine at no cost.AB

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Description: Record the journal entries for Depreciation and Disposal each machine . Required information[The following information applies to the questions displayed below.]During 2015, Merkley Company disposed of three different assets. On January 1, 2015,prio

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Required information [The following information applies to the questions displayed below.] During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: Accumulated Depreciation Original Residual Estimated Cost Value Asset Life (straight line) 26,400 (8 years) Machine $36,000 $ 3,000 10 years $ A Machine 45,000 4,000 30,750 (6 years) 8 years B Machine 75,500 6,700 51,600 (12 years) 16 years C The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2015, for $9,000 cash. b. Machine B: Sold on December 31, 2015, for $9,725; received cash, $2,300, and a $7,425 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost.

Required information [The following information applies to the questions displayed below.] During 2015, Merkley Company disposed of three different assets. On January 1, 2015, prior to their disposal, the accounts reflected the following: Accumulated Depreciation Original Residual Estimated Cost Value Asset Life (straight line) 26,400 (8 years) Machine $36,000 $ 3,000 10 years $ A Machine 45,000 4,000 30,750 (6 years) 8 years B Machine 75,500 6,700 51,600 (12 years) 16 years C The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2015, for $9,000 cash. b. Machine B: Sold on December 31, 2015, for $9,725; received cash, $2,300, and a $7,425 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, 2015, this machine suffered irreparable damage from an accident. On January 10, 2015, a salvage company removed the machine at no cost.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.6E

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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: Accumulated Original Residual Estimated Depreciation (straight line) $13,500 (6 years) 55,200 (8 years) 52,125 (12 years) Asset Cost Value Life $ 21,000 $ 3,000 8 years 10 years 16 years Machine A Мachine B 73,000 4,000 Machine C 75,600 6,100 The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,100 cash. b. Machine B: Sold on December 31 for $11,700; received cash, $2,300, and a $9,400 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…
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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: Accumulated Original Residual Estimated Life 8 years 8 years Depreciation (straight line) $20,250 (6 years) 33,750 (6 years) 48,918 (12 years) Asset Cost Value Machine A $ 30,000 $ 3,000 Machine B 49,000 4,000 Machine C 75,500 6,200 17 years The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,450 cash. b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 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…
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