During 2018, Ct Company disposed of three different assets. On January 1, 2018, prior to the...

 

Transcribed Image Text:

During 2018, Côté Company disposed of three different assets. On January 1, 2018, prior to the disposal of the assets, the accounts reflected the following: Asset Machine Machine A B Machine C Accumulated Original Residual Estimated Depreciation (straight Cost Value Life $20,000 $2,000 8 years 41,000 4,000 10 years 75.000 3,000 12 years The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2018, for $7,200 cash. b. Machine B: Sold on April 1, 2018, for $8,500; received cash. $2.500, and a note receivable for $6,000, due on March 31, 2019, plus 6 percent Interest. c. Machine C: Suffered Irreparable damage from an accident on July 2, 2018. On July 10. 2018, 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 journal entries related to the depreciation expense and disposal for each machine in 2018. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round the final answer to nearest whole dollar.) View transaction let line) $ 13,500 (6 years) 29,600 (8 years) 60,000 (10 years) Record depreciation expense of machine A. Record disposal of machine A. Record depreciation expense of machine B. Record disposal of machine B. Record depreciation expense of machine C. Record disposal of machine C. X Credit During 2018, Côté Company disposed of three different assets. On January 1, 2018, prior to the disposal of the assets, the accounts reflected the following: Asset Machine Machine A B Machine C Accumulated Original Residual Estimated Depreciation (straight Cost Value Life $20,000 $2,000 8 years 41,000 4,000 10 years 75.000 3,000 12 years The machines were disposed of in the following ways: a. Machine A: Sold on January 1, 2018, for $7,200 cash. b. Machine B: Sold on April 1, 2018, for $8,500; received cash. $2.500, and a note receivable for $6,000, due on March 31, 2019, plus 6 percent Interest. c. Machine C: Suffered Irreparable damage from an accident on July 2, 2018. On July 10. 2018, 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 journal entries related to the depreciation expense and disposal for each machine in 2018. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field. Round the final answer to nearest whole dollar.) View transaction let line) $ 13,500 (6 years) 29,600 (8 years) 60,000 (10 years) Record depreciation expense of machine A. Record disposal of machine A. Record depreciation expense of machine B. Record disposal of machine B. Record depreciation expense of machine C. Record disposal of machine C. X Credit

Answer rating: 100% (QA)

Solution Date Particulars Debit Credit 1 Jan 2018 No Journal e... View the full answer