Machine A and Machine B

Two General Journal

During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal of the assets, the accounts reflected the following: Asset Machine A Machine B Original Cost $28,900 74,400 Residual Value $ 3,400 3,900 Estimated Life 5 years 15 years Accumulated Depreciation (straight-line) $20,400 (4 years) 61,100 (13 years) The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1, 2017, for $7,570 cash. b. Machine B: On January 1, 2017, 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 2017. Transaction a relates to the recording of the 2017 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, 2017: View transaction list ..... .12 Journal entry worksheet