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Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Asset Original Cost Residual Value Estimated

Ly 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 $ 42,000 $ 4,900 5 years $ 29,680 (4 years)
Machine B 78,200 5,600 15 years 58,080 (12 years)

The machines were disposed of in the following ways:

  1. Machine A: Sold on January 1 for $13,000 cash.
  2. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal).

Required:

  1. 1. & 2. Prepare the 4 journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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