During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the
disposal of the assets, the accounts reflected the following:
Accumulated Depreciation
Asset
Original Cost Residual Value
Estimated Life
(straight line)
2
Machine A
$30,000
$3,000
10 years
$21,600 (8 years)
Machine B
120,000
14,400
10 years
84,480 (8 years)
Machine C
76,300
5,300
17 years
50,118 (12 years)
The machines were disposed of during the current year in the following ways:
a. Machine A: Sold on January 1 for $8,000 cash.
b. Machine B: Sold on December 31 for $46,960; received cash, $37,568, and an $9,392 interest-bearing (12 percent) note
receivable due at the end of 12 months.
c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage
company removed the machine at no cost.
Required:
1. Give all journal entries related to the disposal of each machine in the current year.
a. Machine A.
b. Machine B.
c. Machine C.
Complete the following questions by preparing worksheet and journal entries given below.
Required A Required B Required C