b

nic Button Inc. (PBI) disposed of three different pieces of equipment during the course of 2021. On January 1, 2021, prior to the disposal of the assets, the accounts reflected the following: Original Equipment Cost Asset 1 $225,000 Asset 2 $123,000 Asset 3 $60,000 Residual Value $9,000 $12,000 $6,000 Estimated Life 12 years 10 years 8 years Accum Depre (straight line) $180,000 (10 years) $88,800 (8 years) $40,500 (6 years) The three assets were disposed of as follows: a) Asset 1 suffered irreparable damage from an accident on July 1, 2021. On July 5, 2021, a salvage company removed the machine from PBI's location at no cost. The asset was insured, and $54,000 cash was collected from the insurance company. b) Asset 2 was sold on April 1, 2021, for $25,500. PBI received cash of $7,500 and a note receivable on the remaining balance due on March 31, 2022, plus 5% interest. c) Asset 3 was sold on January 1, 2021 for $21,500 cash. Required (17 marks): Prepare all the journal entries related to the disposal of each asset. nic Button Inc. (PBI) disposed of three different pieces of equipment during the course of 2021. On January 1, 2021, prior to the disposal of the assets, the accounts reflected the following: Original Equipment Cost Asset 1 $225,000 Asset 2 $123,000 Asset 3 $60,000 Residual Value $9,000 $12,000 $6,000 Estimated Life 12 years 10 years 8 years Accum Depre (straight line) $180,000 (10 years) $88,800 (8 years) $40,500 (6 years) The three assets were disposed of as follows: a) Asset 1 suffered irreparable damage from an accident on July 1, 2021. On July 5, 2021, a salvage company removed the machine from PBI's location at no cost. The asset was insured, and $54,000 cash was collected from the insurance company. b) Asset 2 was sold on April 1, 2021, for $25,500. PBI received cash of $7,500 and a note receivable on the remaining balance due on March 31, 2022, plus 5% interest. c) Asset 3 was sold on January 1, 2021 for $21,500 cash. Required (17 marks): Prepare all the journal entries related to the disposal of each asset