(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.

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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