Problem 2 (10 points)

Assume that Jones Company purchased a machine on January 1, 2016 for $80,000. The machine had an estimated life of five years and an estimated residual value of $10,000. The company uses the straight-line method to depreciate the machine. On April 1, 2018, the machine was sold for $52,000 cash.

REQUIRED:

1. Make the journal entry to record depreciation for 2018.
2. Make the journal entry to record the sale of the asset.