Question

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.

Answer 1

Answer:

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