! Required information CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $24,500. The estimated useful life was five years and the residual value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,500 hours; year 2, 2,400 hours; year 3, 2,000 hours; year 4, 2,100 hours; and year 5, 1,000 hours. CC9-1 (Algo) Part 2 2. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.) A No Answer is not complete. Transaction 1 General Journal Debit Credit Loss on Disposal of PPE 3,350 B 2 0 Accumulated Depreciation-Equipment Loss on Disposal of PPE Accumulated Depreciation-Equipment 3 Accumulated Depreciation-Equipment
! Required information CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5] [The following information applies to the questions displayed below.] Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased at the beginning of the year at a cost of $24,500. The estimated useful life was five years and the residual value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production was year 1, 2,500 hours; year 2, 2,400 hours; year 3, 2,000 hours; year 4, 2,100 hours; and year 5, 1,000 hours. CC9-1 (Algo) Part 2 2. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3. Prepare the journal entry to account for the disposal of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar amount.) A No Answer is not complete. Transaction 1 General Journal Debit Credit Loss on Disposal of PPE 3,350 B 2 0 Accumulated Depreciation-Equipment Loss on Disposal of PPE Accumulated Depreciation-Equipment 3 Accumulated Depreciation-Equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Rahul
![!
Required information
CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5]
[The following information applies to the questions displayed below.]
Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine
was purchased at the beginning of the year at a cost of $24,500. The estimated useful life was five years and the residual
value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production
was year 1, 2,500 hours; year 2, 2,400 hours; year 3, 2,000 hours; year 4, 2,100 hours; and year 5, 1,000 hours.
CC9-1 (Algo) Part 2
2. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3. Prepare the journal entry to account for the disposal
of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar
amount.)
A
No
Answer is not complete.
Transaction
1
General Journal
Debit
Credit
Loss on Disposal of PPE
3,350
B
2
0
Accumulated Depreciation-Equipment
Loss on Disposal of PPE
Accumulated Depreciation-Equipment
3
Accumulated Depreciation-Equipment](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae4075ec-16d1-40cd-8048-6f4671d1d36a%2F0925e29e-58ce-4fcf-8742-bf12f114db1f%2Fdbtme8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
CC9-1 (Algo) Accounting for the Use and Disposal of Long-Lived Assets [LO 9-3, LO 9-5]
[The following information applies to the questions displayed below.]
Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine
was purchased at the beginning of the year at a cost of $24,500. The estimated useful life was five years and the residual
value was $1,500. Assume that the estimated productive life of the machine is 10,000 hours. Expected annual production
was year 1, 2,500 hours; year 2, 2,400 hours; year 3, 2,000 hours; year 4, 2,100 hours; and year 5, 1,000 hours.
CC9-1 (Algo) Part 2
2. Assume NGS sold the hydrotherapy tub system for $7,350 at the end of year 3. Prepare the journal entry to account for the disposal
of this asset under the three different methods. (Do not round intermediate calculations. If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest dollar
amount.)
A
No
Answer is not complete.
Transaction
1
General Journal
Debit
Credit
Loss on Disposal of PPE
3,350
B
2
0
Accumulated Depreciation-Equipment
Loss on Disposal of PPE
Accumulated Depreciation-Equipment
3
Accumulated Depreciation-Equipment
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