James Company purchased four identical machines on January 10, 2019, paying $5,270 for each. The useful life of each machine is expected to be seven years, with a salvage value of $650 each. The company uses the straight-line method of depreciation. Selected transactions involving the machines follow. The accounts for recording these transactions are also given. DATE TRANSACTIONS FOR 2019 Jan. 10 Paid $5,270, in cash, for each of four machines. Dec. 31 Recorded depreciation for the year on the four machines. points DATE TRANSACTIONS FOR 2020 Apr. 3 Machine 1 was stolen; no insurance was carried. Dec. 31 Recorded depreciation for the year for the three remaining machines. eBook DATE TRANSACTIONS FOR 2021 Sept. 18 Sold machine 2 for $3,800 cash. Dec. 31 Recorded depreciation for the year on the two remaining machines. Print References DATE TRANSACTIONS FOR 2022 June 4 Machine 3 was traded in for a similar machine (no. 5) with a $8,042 list price and fair market value. A trade-in allowance of $3,255 was received. The balance was paid in cash. The new machine has an estimated life of seven years and salvage value of $650. Aug. 29 Machine 4 was traded in for a similar machine (no. 6) with an $9,050 list price and fair market value. A trade-in allowance of $2,310 was received. The balance was paid in cash. The new machine has an estimated life of seven years, with salvage value of $650. Dec. 31 Record depreciation on the two new machines. Required: Prepare the journal entries for the transactions. Analyze: What is the balance of the Accumulated Depreciation account on December 31, 2022? (Note: The presentation in the text related to the exchanges of assets has been superseded by FAS 153. Under FAS 153, gains and losses on the exchange of assets that have commercial substance are recognized in full. The deferral of gains (by reducing the basis in the new asset) only pertains to assets that lack commercial substance.) Complete this question by entering your answers in the tabs below. General Journal Analyze Prepare the journal entries for the transactions. (Use the Machinery (Old) answer only when there is an trade.) View transaction list Journal entry worksheet Record loss on stolen machine. Note: Enter debits before credits. General Journal Debit Credit Date Apr 03, 2020 Record entry Clear entry View general journal