PB9-2 (Algo) Recording and Interpreting the Disposal of Long-Lived Assets [LO 9-5] During the current year, Rayon Corporation disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Estimated Life 7 years Accumulated Depreciation (straight-line) $24,400 (4 years) 7,860 (3 years) Asset Machine A Machine B Original Cost $55,000 15,800 Residual Value $12,300 2,700 5 years The machines were disposed of in the following ways: a. Machine A: Sold on January 2, for $35,100 cash. b. Machine B: On January 2, 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 Machine B on January 2 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 2 3 4 Record the current year depreciation for Machine A prior to disposal. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 Record the disposal of Machine A. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 Record the current year depreciation for Machine B prior to disposal. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 23 4 Record the disposal of Machine B. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal