On January 1, 2021, Riverbed Company purchased on credit machinery costing $165,000 and incurred $5,705 in installation costs.

The machinery has an estimated useful life of 15 years and a residual value of $10,790. The company uses the straight-line method of depreciation. At the end of 2022, Riverbed recorded depreciation and assessed the asset, determining a recoverable amount of $137,800. Riverbed sold the equipment to Voile Corporation on June 30, 2023, for $135,500.

On January 1, 2021, Riverbed Company purchased on credit machinery costing $165,000 and incurred $5.705 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,790. The company uses the straight-line method of depreciation. At the end of 2022, Riverbed recorded depreciation and assessed the asset, determining a recoverable amount of $137,800. Riverbed sold the equipment to Voilex Corporation on June 30, 2023, for $135,500. Prepare the necessary entries assuming Riverbed has a December 31 year-end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date 2021 Account Titles and Explanation Machinery Cash 1.2021 Depreciation Expense 31.2022 Accumulated Depreciation-Machinery (To record depreciation expense) Depreciation Expense Accumulated Depreciation Machinery (To record depreciation expense) 31, 2022 Loss on Impairment Accumulated Depreciation-Machinery ne 30, 2023 (To record loss on impairment) Depreciation Expense 230,2023 Accumulated Depreciation-Machinery (To record depreciation expense) Cash Accumulated Depletion Machinery Gain on Disposal of Machinery (To record disposal of machinery) Debit 165000 5705 10661 Credit 165000 5705 10661