Give the journal entries for the following selected transactions of the Eagle Manufacturing Company. The company uses the straight-line method of calculating depreciation and closes its books annually on December 31 .

(1) A machine is purchased on November 1, 1976, for \(\$ 30,000\). It is estimated that it will be used for 10 years and that it will have a salvage value of \(\$ 600\) at the end of that time. Give the journal entry for the depreciation at December \(31,1976\).

(2) Record the depreciation for the year ending December 31, 1977.

(3) In August, 1982, it is decided that the machine will probably be used for a total of 12 years and that its scrap value will be \(\$ 400\). Record the depreciation for the year ending December 31, 1982.

(4) The machine is sold for \(\$ 1,000\) on March 31, 1987. Record the entries of that date, assuming that depreciation is recorded as indicated in (3).