CP9-2 Recording and Interpreting the Disposal of Long-Lived Assets (LO 9-5) During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Asset Cost Value Life Machines81.700 $7,500 15 Accumulated Depreciation (straight- l ine) - 9.30 Machine 25.500 3,100 8 The machines were disposed of in the following ways: a, Machine A: Sold on January 2 for $25,500 b. Machine B: On January 2, this machine was sold to 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 Record the disposal of January 2, 2014. Machin $25,500 Note: Enter debits before credits. Date General Journal Jan 02 Debit Credit ST Record entry Clear entrs View general Journal CP9-2 Recording and Interpreting the Disposal of Long-Lived Assets (LO 9-5) During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Depreciation Original Residual Estimated (straight- Asset Cost Value Life line) Machine $ 81,700 $ 7,500 15 years $ 64,307 years) Machine 25,500 3,100 years 16,800 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 1 Record the disposal of Machine A for $25,500 cash on January 2, 2014. 2 Record the disposal of Machine B due to irreparable damage from an accident. it Credit Note : journal entry has been entered