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Candy Craze purchased and installed a machine on January $1,2023,$ at a total cost of $$297,500.$ Straight$-$line depreciation was taken each year for four years, based on the assumption of a seven$-$year life and no residual value. The machine was disposed of on July $1,2027,$ during its fifth year of service. Candy Craze's year$-$end is December $31.$

Required:

Present the entries to record the partial year's depreciation on July $1,2027.$

Journal entry worksheet

$1$

Record' partial year depreciation in year of disposal.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,2027,,,],[,,,],[,,,],[,,,],[,,,]]$

Candy Craze purchased and installed a machine on January $1,2023,$ at a total cost of $$297,500.$ Straight$-$line depreciation was taken each year for four years, based on the assumption of a seven$-$year life and no residual value. The machine was disposed of on July $1,2027,$ during its fifth year of service. Candy Craze's year$-$end is December $31.$

Required:

Present the entries to record the partial year's depreciation on July $1,2027.$

Journal entry worksheet

$1$

Record partial year depreciation in year of disposal.

Note: Enter debits before credits.

$\backslash$table$[[$Date$`,$General Journal,Debit,Credit$],[$July $01,2027,,,],[,,,],[,,,],[,,,],[,,,]]$

Record the disposal under each of the following unrelated assumptions:

a$.$ The machine was sold for $$113,000$ cash.

Journal entry worksheet

$1$

Record the sale of machine for $$113,000.$

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,2027,,,=],[,,,],[,,,],[,,,],[,,,],[,,,]]$

b$.$ Candy Craze received an insurance settlement of $$97,000$ resulting from the total destruction of the machine in a fire.

Journal entry worksheet

$1$

Record receipt of $$97,000$ from insurance settlement.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$July $01,2027,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$

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