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record the depreciation expense for the three used machines record the depreciat

ID: 2568711 • Letter: R

Question

record the depreciation expense for the three used machines record the depreciation expense for the three used machines record the depreciation expense for the three used machines During the current year. Rayon Corporation disposed of two different assets. On January 1. prior to their disposal, the accounts reflected the following: Accumu Depreciation (straight-line) Original Residual Estimated Cost Value Life 8 years 6 years Asset $31,500 (5 years) Machine A $61,000 $10,600 2,000 Machine B 14.300 8,200 (4 years) The machines were disposed of in the following ways a. Machine A: Sold on January 2, for $33,600 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: 182. Give the journal entries related to the disposal of Machine A and Machine 8 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.) View transaction list Journal entry worksheet 2 Record the current year depreciation for Machine A prior to disposal. Note: Enter debits before credits. Date General Journal Debit Credit January 02 NO Journa Entry Reou rec Rsoond enty Clear eny

Explanation / Answer

Record journal entry :

Note: No journal entry required for update depreciation only disposal of machine entry required..

Date accounts & Explanation debit credit Jan 2    no journal entry required Jan 2 Cash a/c 33600 Accumlated depreciation 31500        Gain on disposal of Machine A 4100        Machine A 61000 (To record disposal machine A) Jan 2            No journal entry required Jan 2 Accumlated depreciation 8200 Loss on disposal of Machine B 6100        Machine B 14300 (TO record disposal of Machine B)