Journal entries for depreciable asset transactions. Assume that on March 31, Year 6, Boston Can Corporation acquired a new machine for $\$ 16,000$. The seller agreed to accept in payment $\$ 10,000$ in cash and a 10 percent, one-year note for $\$ 6,000$. Boston Can Corporation estimated the new machine to have a service life of ten years and a salvage value of $\$ 1,000$.
Boston Can Corporation had purchased a similar old machine on January 1, Year 1 , for $\$ 12,000$. The firm estimated that the old machine would have a useful life of eight years, after which it would have a salvage value of $\$ 800$. It sold the old machine for $\$ 4,000$ on April 30, Year 6.
Prepare dated journal entries to record all transactions from March 31, Year 6 through December 31, Year 8, including year-end adjustments but excluding closing entries. The firm uses the straight-line depreciation method.