Question: During 2015 C t Company disposed of three different assets On

During 2015, Côté Company disposed of three different assets. On January 1, 2015, prior to the disposal of the assets, the accounts reflected the following:
The machines were disposed of in the following ways:
a. Machine A: Sold on January 1, 2015, for $ 7,200 cash.
b. Machine B: Sold on April 1, 2015, for $ 8,500; received cash, $ 2,500, and a note receivable for $ 6,000, due on March 31, 2016, plus 6 percent interest.
c. Machine C: Suffered irreparable damage from an accident on July 2, 2015. On July 10, 2015, a salvage company removed the machine immediately at no cost. The machine was insured, and $ 18,000 cash was collected from the insurance company.
Required:
1. Prepare all journal entries related to the disposal of each machine in 2015.
2. Explain the accounting rationale for the way that you recorded each disposal.

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  • CreatedAugust 04, 2015
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