The following are the transactions of Morrell Corporation: Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,740 and their Accumulated Depreciation was $4,740. No residual value was received. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,480.

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Tabetha

Business

1 July, 11:33

The following are the transactions of Morrell Corporation: Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,740 and their Accumulated Depreciation was $4,740. No residual value was received. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,480.

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Answers (1)

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Titan · Answer 1

journal entries are given below

Explanation:

given data

computers cost = $4,740

Accumulated Depreciation = $4,740

disposal = $3,480

solution

journal entries are

S. No. Accounting Titles Debit Credit

a. Accumulated depreciation 4,740

Computer 4,740

b. Accumulated depreciation 3,480

Loss on disposal 1,260

Computers 4,740