During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following:

Asset	Original Cost			Residual Value			Estimated Life		Accumulated Depreciation (straight-line)
Machine A	$	80,200		$	6,100		15	years	$	64,220	(13 years)
Machine B		24,000			2,800		8	years		15,900	(6 years)

The machines were disposed of in the following ways:

1. Machine A: Sold on January 2 for $24,000 cash.
2. Machine B: On January 2, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:

1. 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.)

The last journal entries for 1 and 2 are not machine A or B. That's wrong...

Answer is not complete. No Date General Journal Debit Credit 1 Jan 02 Cash 24,000 64,220 Accumulated Depreciation Equipment Gain on Disposal 8,020 80,200 2 Jan 02 15,900 Accumulated Depreciation Equipment Loss on Disposal 8,100 24,000