PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5]

PA9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5) Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Original Residual Estimated Accumulated Depreciation Asset Cost Value Life (straight-Line) Machine A $32,000 $3,500 5 years $22,800 (4 years) Machine B 64,200 3,300 $48,720 (12 years) The machines were disposed of in the following ways: 15 years a. Machine A: Sold on January 1 for $9,900 cash. b. Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Print Record the current year depreciation for Machine A prior to disposal. References Note: Enter det before credits General Journal babit Credil Date January 01 Record entry Clear entry View general Journal First account field.) View transaction list Journal entry worksheet Machine A: Sold on January 1 for $9,900 cash. Record the transaction. Note: Enter debits before credits. General Journal Dobit Credit Dato January 01 Record entry Clear entry View general journal Skloped View transaction list Journal entry worksheet eBook 2 3 4 Print Record the current year depreciation for Machine B prior to disposal. References Note: Enter debits before credits General Journal Debit Credit Date January 01 Record entry Clear entry View general Journal Skipped View transaction list Journal entry worksheet eBook 2 3 Print Machine B: On January 1, this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction - References Note: Enter debit before credits General Journal Debli Credit Date January 01 Record entry Clear entry View general Journal ME GEW