Exercise $10-17($Algo$)$ Disposal of assets LO P$2$

Dylan Company owns a machine that cost $$126,600$ and has accumulated depreciation of $$94,300.$ Prepare the entry to record the disposal of the machine on January $1$ in each separate situation.

The machine needed extensive repairs and was not worth repairing. Dylan disposed of the machine, receiving nothing in return.

Dylan sold the machine for $$15,900$ cash.

Dylan sold the machine for $$32,300$ cash.

Dylan sold the machine for $$40,200$ cash.

Journal entry worksheet

$1$

$2$

$3$

$4$

Record the disposal of the machine receiving nothing in return.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $01,,,],[,,,],[,,,],[,,,],[,,,]]$

Straight$-$line depreciation with Adjusted Depreciation

On January $1,$ Year $1,$ Naples purchased a computer system that cost $$1,480,000.$ The estimated useful life of the computer is $3$ years and the salvage value is $$40,000.$ Straight$-$line depreciation is to be used. On January $1,$ Year $2,$ Naples determined that the estimated useful life of the computer would be $4$ years instead of $3$ years. The estimated salvage value will only be $$10,000.$

Prepare the journal entry to record depreciation expense for Year $1.$

Prepare the journal entry to record depreciation expense for Year $2.$