On December 31, 2020, Skysong Inc. has a machine with a book value of $1,090,400. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,508,000 417.600 $1.090,400 Depreciation is computed at $69.600 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 Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $498,800 was received for this casualty. Assume the settlement was received immediately. (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 tities and enter for the amounts.) Account Titles and Explanation Debit Credit 31, 2021 Depreciation Expense 46400 late 46400 Accumulated Depreciation Machinery (To record current depreciation.) 31, 2021 Cash 498800 Accumulated Depreciation-Machinery 464000 Loss on Disposal of Machinery 545200 1508000 Machinery At mabina (5) On April 1, 2021, Skysong sold the machine for $1,206,400 to Yoakam Company. (Credit account titles are automatically in yindented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit April 1, 2021 (To record current depreciation.) April 1.2021 I (To record sale of the machine.) 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