disposal the accounts reflected the following Original Resid

disposal, the accounts reflected the following: Original Residual Estimated Cost Machine A $68,000 $11,900 2,300 Life 6 years$28,050 (3 years) 4 years Machine B 15,000 6,350 (2 years) The machines were disposed of in the following ways: Machine A: Sold on January 2, for $42,600 cash. immediately by a salvage company at no cost. a. from an accident and was Required 182. Give the journal entries related to the disposal of Machine A and Machine B on January 2 of the entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) General Debit No 1January 02 No ya MacBook A

Solution

Answer:

Date

General Journal

Debit $

Credit $

Jan,-2

No entry

Jan,-2

Cash

42600

Accumulated depreciation- Machine A

28050

Gain on Disposal

2650

Equipment

68000

Jan,-2

No entry

Jan,-2

Accumulated depreciation-Machine B

6350

Loss on Disposal of machine

8650

Equipment

15000

Notes:

here on january-2 no entry for the depreciation because it is starting of the year

Date	General Journal	Debit $	Credit $
Jan,-2	No entry
Jan,-2	Cash	42600
	Accumulated depreciation- Machine A	28050
	Gain on Disposal		2650
	Equipment		68000
Jan,-2	No entry
Jan,-2	Accumulated depreciation-Machine B	6350
	Loss on Disposal of machine	8650
	Equipment		15000