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: Asset Original Cost Residual Value Estimated Life Accumulated Depreciation (straight-line) Machine A $34,000 $3,400 5 years $24,480 (4 years) Machine B 63,200 3,700 14 years $46,750 (11 years) The machines were disposed of in the following ways: Machine A: Sold on January 1 for $9,800 cash. 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.)

Journal entry worksheet 1 Record the current year depreciation for Machine B prior to disposal. Note: Enter debits before credits. Journal entry worksheet Machine A: Sold on January 1 for $9,800 cash. Record the transaction. Note: Enter debits before credits. Journal entry worksheet 1 2 Machine B: On January 1 , this machine was scrapped with zero proceeds (and zero cost of removal). Record the transaction. Note: Enter debits before credits