2.

During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Machine A Machine B Original Cost $81,700 25,500 Residual Value $7,500 3,100 Accumulated Depreciation Estimated Life (straight-line) 15 years $64,307 (13 years) 8 years 16,800 (6 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 2 for $25,500 cash. b. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the disposal of Machine B due to irreparable damage from an accident. Note: Enter debits before credits. Date General Journal Credit Debit 16,800 Jan 02 Accumulated DepreciationEquipment Loss on Disposal Equipment Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the disposal of Machine A for $25,500 cash on January 2, 2014. Note: Enter debits before credits. Credit Date Jan 02 General Journal Cash Accumulated DepreciationEquipment Gain on Disposal Equipment Debit 25,500 64,307 81,700 Record entry Clear entry try View general journal