Question

During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation (straight-line) $63,007 (13 years) Original Residual Estimated Life Cost Value Asset Мachine A $77,200 $4,500 15 years 14,100 (6 years) Machine B 21,000 8 years 2,200 The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $21,000 cash b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal)

Answer 1

company * During the current yeas, martinez Reg I Date Janoz Account Name bebit credit cash $ 2100o Accumulated Depreciation $ 63007 6807 TO Gain on sale of machine To machine A $ 77200 CTO record the disposal of machine A) Reg:2 Dale credit 4 Jano2 Account Name Debit Accumulated Depreciation $ 14100 Loss on sale of Disposal 690o TO machine B ICTO second the disposal of machine B $ 21000