During the current year, Martinez 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 $82,700 26,500 Residual Value $8,000 3,300 Accumulated Depreciation Estimated Life (straight-line) 15 years $64,740 (13 years) 8 years 17,400 (6 years) The machines were disposed of in the following ways: a Machine A: Sold on January 2 for $26.500 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 Journal entry worksheet Record the disposal of Machine A for $26,500 cash on January 2, 2014 Note: Enter debits before credits. Credit Date Jan 02 General Journal Cash Accumulated Depreciation-Equipment Equipment Gain on Disposal Debit 26,500 64,7401 82,700 8,540 Record entry Clear entry View general journal During the current year, Martinez 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 $82,700 26,500 2,700 Residual Value $8,000 3,300 $8,000 Accumulated Depreciation Estimated Life (straight-line) 15 years 15 years $64,740 (13 years) 8 years 17,400 (6 years) The machines were disposed of in the following ways: a Machine A: Sold on January 2 for $26,500 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 Journal entry worksheet Record the disposal of Machine B due to irreparable damage from an accident. Note: Enter debits before credits Debit Credit Date Jan 02 General Journal Accumulated Depreciation Equipment Loss on Disposal Record entry Clear entry View general journal