Check I During the current year, Merkley Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Machine C Original Cost $ 30,000 53,000 75,100 Residual Value $ 3,000 4,000 5,300 Estimated Life 8 years 8 years 15 years Accumulated Depreciation (straight line) $20, 250 (6 years) 36,750 (6 years) 55,840 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9,150 cash. b. Machine B: Sold on December 31 for $10,725; received cash, $2,300, and a $8,425 interest-bearing (12 percent) note receivable due at the end of 12 months. C. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Check m ! Required information Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required C Give all journal entries related to the disposal of Machine A in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit A January 01 No Transaction Recorded B January 01 Cash 9,150 Accumulated depreciation, Machine A Gain on disposal of machine Equipment (Machine A) Check m ! Required information Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required C Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit A December 31 6,125 Depreciation expense Accumulated depreciation, Machine B 6,125 B December 31 Cash 2,300 8,425 Note receivable Accumulated depreciation, Machine B Equipment (Machine B) Gain on disposal of machine