Business
AccountingCornerstones of Financial AccountingDisposal of Fixed Asset Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine: The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation. Required: 1. Prepare the journal entry to record depreciation expense for 2019. 2. Compute accumulated depreciation at December 31, 2019. 3. Prepare the journal entry to record the sale of the machine. 4. CONCEPTUAL CONNECTION Explain how the disposal of the fixed asset would affect the 2019 financial statements. Ignore income taxes.
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Disposal of Fixed Asset Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine: The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation. Required: 1. Prepare the journal entry to record depreciation expense for 2019. 2. Compute accumulated depreciation at December 31, 2019. 3. Prepare the journal entry to record the sale of the machine. 4. CONCEPTUAL CONNECTION Explain how the disposal of the fixed asset would affect the 2019 financial statements. Ignore income taxes.

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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881
BuyFind

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
Publisher: Cengage Learning
ISBN: 9781337690881

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Problem 68APSA
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Chapter 7, Problem 59E
Textbook Problem

Disposal of Fixed Asset

Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2019. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:

Chapter 7, Problem 59E, Disposal of Fixed Asset Pacifica Manufacturing retired a computerized metal stamping machine on

The machine was sold for $225,000 cash. Pacifica uses the straight-line method of depreciation.

Required:

1. Prepare the journal entry to record depreciation expense for 2019.

2. Compute accumulated depreciation at December 31, 2019.

3. Prepare the journal entry to record the sale of the machine.

4. CONCEPTUAL CONNECTION Explain how the disposal of the fixed asset would affect the 2019 financial statements. Ignore income taxes.

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Chapter 7 Solutions

Cornerstones of Financial Accounting
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