A company purchased and installed machinery on January 1 at a total cost of $93,000. Straight-line depreciation was calculated base don the assumption of a five-year life adn no salvage value. The machinery was disposed of on July 1 of year four. The company uses the calendar year.

Show any work in the journal entry table.

1. Prepare the general journal entry to update depreciation to July 1 in year four. Assume depreciation has already been recorded for the first 3 years.

2. Prepare the general journal entry to record the sale of the machine for $27,000 cash.