On December $31,2020,$ Pronghorn Inc, has a machine with a book value of $$996,400.$ The original cost and related accumulated

depreciation at this date are as follows.

Depreciation is computed at $$63,600$ per year on a straight$-$line basis.

Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record

the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

$($b$)$

Your answer is partially correct.

On April $1,2021,$ Pronghorn sold the machine for $$1,102,400$ to Yoakam Company. $($Credit account titles are automatically indented

when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the

amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

April $1,2021$

Depreclation Expense

Accumulated Depreclatlon$-$Machinery

$($To record current depreciation.$)$

April $1,2021$

Accumulated Depreclation$-$Machinery

Loss on Disposal of Machinery

$($To record sale of the machine.$)$