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

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During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Accumulated Original Residual Estimated Depreciation Asset Cost Value Life (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: a. Machine A: Sold on January 2 for $24,000 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 1 2 Record the disposal of Machine B due to irreparable damage from an accident. Note: Enter debits before credits Date General Journal Debit Credit Jan 02 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: Original Renidaal Asset Cost Value Machine A $80,200 $6,100 Machine B 24,000 2,000 Estimated Life 15 years 8 years Accumulated Depreciation (straight-line) $64,220 (13 years) 15,900 (6 years) The machines were disposed of in the following ways: 3. Machine A: Sold on January 2 for $24.000 cash. 6. 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 let Journal entry worksheet 2 Record the disposal of Machine A for $24,000 cash on January 2, 2014 Note: Enter debits before credits Date General Journal Debit Credit Jan 02 Record entry Clear entry View general Journal

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