(Solved) The following information applies to the questions displayed below.] During the current year, Merkley Company disposed of three different assets
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 their disposal, the accounts reflected the following:
![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 their disposal, the accounts reflected the following: Accumulated Depreciation (straight line) 26,000 (4 years) 27750 (6 years) 52,725 (12 years) Asset Machine A Machine B Machine C Original Cost Residual Value 42,000 $3,000 6 years Estimated Life 41,000 76,100 4,000 8 years 5,800 16 years The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $15,600 cash. b. Machine B: Sold on December 31 for $9,125; received cash, $2,200, and a $6,925 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. value: 1.00 points Required 1. Give all journal entries related to the disposal of each machine in the current year. (If no entry is required for a transaction/event, select No journal entry requirec a. Machine A.](https://i0.wp.com/d2vlcm61l7u1fs.cloudfront.net/media%2F560%2F56089ac6-2c23-40c9-bac3-4e61077f7012%2Fphpi3dXrm.png?ssl=1)
Expert Answer
| JOURNAL | |||
| Date | Account Head & Description | Debit Amount | Credit Amount |
| Jan 1 | Cash | 15600 | |
| Accumulated depreciation-Machine A | 26000 | ||
| Loss on disposal of asset (42000-26000-15600) | 400 | ||
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