Disposal of a Tangible Capital Asset On August 30, Lhasa Manufacturing Company decided to sell one of its fabricating machines, which was 15 years old, for $6,000. The machine, which originally cost $105,000, had accumulated depreciation of $102,500. Required: Prepare the journal entry to record the disposal of the machine. For those boxes in which no entry is required, leave the box blank.

Disposal of a Tangible Capital Asset On August 30, Lhasa Manufacturing Company decided to sell one of its fabricating machines, which was 15 years old, for $6,000. The machine, which originally cost $105,000, had accumulated depreciation of $102,500. Required: Prepare the journal entry to record the disposal of the machine. For those boxes in which no entry is required, leave the box blank.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 3MCQ: When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash...

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When depreciation is recorded each period, what account is debited? a. Depreciation Expense b. Cash c. Accumulated Depreciation d. The fixed asset account involved Use the following information for Multiple-Choice Questions 7-4 through 7-6: Cox Inc. acquired a machine for on January 1, 2019. The machine has a salvage value of $20,000 and a 5-year useful life. Cox expects the machine to run for 15,000 machine hours. The machine was actually used for 4,200 hours in 2019 and 3,450 hours in 2020.
23. Disposal of a Tangible Capital Asset On August 30, Lhasa Manufacturing Company decided to sell one of its fabricating machines, which was 15 years old, for $6,000. The machine, which originally cost $105,000, had accumulated depreciation of $102,500. Required: Prepare the journal entry to record the disposal of the machine
On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $208,831.00 with an accumulated depreciation of $187,947.90. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal. Select the correct answer. Accumulated Depreciation Dr. $208,831.00 Equipment Cr. $208,831.00 Gain on Disposal of Asset Cr. $20,883.10 Loss on Disposal of Asset Dr. $187,947.90
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $238,400 and has accumulated depreciation of $214,560. Depreciation has been recorded up to the end of the year. Which of the following will be included in the journal entry for the disposal? a. Loss on Disposal of Asset, debit, $214,560 b. Accumulated Depreciation, debit, $238,400 c. Gain on Disposal of Asset, credit, $23,840 d. Equipment, credit, $238,400
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $230,200 and has accumulated depreciation of $207,180.00. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? Oa. Accumulated Depreciation, debit, $230,200 Ob. Loss on Disposal of Asset, debit, $207,180.00 Oc. Gain on Disposal of Asset, credit, $23,020.00 Od. Equipment, credit, $230,200 Previous Next
On December 31, Strike Company has decided to discard one of its batting cages. The equipment had an initial cost of $206,400 and has accumulated depreciation of $185,760. Depreciation has been recorded up to the end of the year. Which of the following will be included in the entry to record the disposal? a.Equipment, credit, $206,400 b.Gain on Disposal of Asset, credit, $20,640 c.Accumulated Depreciation, debit, $206,400 d.Loss on Disposal of Asset, debit, $185,760
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Rottino Company purchased a new cutting machine on January 1, 2017, at $17,000, paid in cash. It has been depreciated using the double-declining-balance method based on an estimated salvage value of $0 and an estimated useful life of 5 years. Prepare Rottino Company's journal entries to record the disposal of the machine on October 31, 2018, in these two independent situations (show your calculations to prove the result): Requirement: (i) Sold the machine for $7.600 cash. (ii) Exchange the old cutting machine with cash of $1,000 for a new cutting machine. The old machine had a fair value of $7,000.
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