Ly Company disposed of two different assets. On January 1, prior to disposal of the assets, the accounts reflected the following: Estimated Life Asset Machine A Machine B Original Cost $24, 700 64, 800 Residual Value $ 2, 200 3,300 Accumulated Depreciation (straight-line) $ 18,000 (4 years) 53,300 (13 years) 5 years 15 years The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1 for $6,010 cash. b. Machine B: On January 1, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of the current year. Transaction "a" relates to the recording of the depreciation, and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1: Journal entry worksheet 1 2 > Record the entry for depreciation expense. Note: Enter debits before credits. Transaction Debit Credit a. General Journal Gain on disposal Equipment Record entry Clear entry View general journal Journal entry worksheet 2 Record the entry for disposal of Machine A. Note: Enter debits before credits. Transaction Debit Credit b 6,010 General Journal Cash Accumulated depreciation, machine A Gain on disposal Equipment Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry for depreciation expense. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general journal Journal entry worksheet