During the current year, a 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 Estimated Life 15 years. 8 years Accumulated Depreciation (straight-line) $64,307 (13 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 scrapped with zero proceeds (and zero cost of removal). Required: Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. Journal entry worksheet A B Machine A: Sold on January 2 for $25,500 cash. Record the transaction. Note: Enter debits before credits. Date January 02 Cash General Journal Debit Credit 25,500 Accumulated Depreciation-Equipment Sales Revenue Equipment 64,307 8,107 81,700 Record entry Clear entry View general journal A B Machine B: On January 2, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Accumulated Depreciation-Equipment Accumulated Amortization