Required information(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 thedisposal of the assets, the accounts reflected the following:AccumulatedOriginalResidualEstimatedLife8 years8 yearsDepreciation(straight line)$20,250 (6 years)33,750 (6 years)48,918 (12 years)AssetCostValueMachine A$ 30,000$ 3,000Machine B49,0004,000Machine C75,5006,20017 yearsThe machines were disposed of during the current year in the following ways:a. Machine A: Sold on January 1 for $9,450 cash.b. Machine B: Sold on December 31 for $10,325; received cash, $2,500, and a $7,825 interest-bearing (12 percent) notereceivable 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 salvagecompany removed the machine at no cost.Required:1. Give all journal entries related to the disposal of each machine in the current year.a. Machine A.b. Machine B.c. Machine C.X Answer is not complete.Complete the following questions by preparing worksheet and journal entries given below.Required ARequired BRequired CGive all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event,select "No journal entry required" in the first account field.)NoTransactionGeneral JournalDebitCreditADecember 31Depreciation expense5,625 OAccumulated depreciation, Machine B5,625 OBDecember 31Cash2,500 ONote receivable7,825 OAccumulated depreciation, Machine B39,375 OGain on disposal of machine15,250XEquipment (Machine B)49,000 O< Required ARequired C >

At the time of sale of a fixed asset, accumulated depreciation is deducted from the original cost of…

Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000

Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/e select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit Depreciation expense Accumulated depreciation, Machine B A December 31 5,625 5,625 B December 31 Cash 2,500 Note receivable 7,825 Accumulated depreciation, Machine B 39,375 Gain on disposal of machine 15,250 Equipment (Machine B) 49,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...

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