During the current year Rayon Corporation disposed of two different
During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:
The machines were disposed of in the following ways:
a. Machine A: Sold on January 2 for $ 33,500 cash.
b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost.
Required:
1. Give the journal entry related to the disposal of Machine A on January 2 of the current year.
2. Give the journal entry related to the disposal of Machine B on January 2 of the current year.
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