Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $64,220

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Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $64,220 (13 years) 15,900 (6 years) Original Residual Cost Asset Machine A $80,200 Machine B 24,000 Value $6,100 2,800 The machines were disposed of in the following ways a. Machine A: Sold on January 2 for $24,000 cash b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on January 2 of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal View transaction list Journal entry worksheet Record the disposal of Machine A for $24,000 cash on January 2, 2014 Note: Enter debits before credits Date General Journal Debit Credit Jan 02

Explanation / Answer

a) Journal entry :

b) Journal entry :

Date accounts & explanation debit credit Acccumlated depreciation 64220 Cash 24000     Gain on sale of machine 8020      Machine A 80200 (To record Sale of machine)

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