PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Residual Value Estimated Life 6 years $31,000 60,200 $3,100 3,500 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) a. Machine A: Sold on January 1 for $8,700 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Cost Residual Value Estimated Life 6 years $31,000 60,200 $3,100 3,500 15 years The machines were disposed of in the following ways: Asset Machine A Machine B Accumulated Depreciation (straight-line) $23,250 (5 years) $45,360 (12 years) a. Machine A: Sold on January 1 for $8,700 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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