Required information P8-5 (Algo) Recording and Interpreting the Disposal of Three Long-Lived Assets LO8-3, 8-5 [The following information applies to the questions displayed below] During the current year, Yost Company disposed of three different assets. On January 1 of the current year, prior to the disposal of the assets, the accounts reflected the following: Accumulated Depreciation Asset Machine A Machine B Machine C Original Cost Residual Value Estimated Life $27,000 $3,000 8 years 140,000 16,800 8 years 76,400 6,700 17 years (straight line) $18,000 (6 years) 92,400 (6 years) 49,200 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $8,500 cash. b. Machine B: Sold on December 31 for $54,200; received cash, $43,360, and an $10,840 interest-bearing (12 percent) note receivable due at the end of 12 months. c. Machine C: On January 1, this machine suffered irreparable damage from an accident. On January 10, a salvage company removed the machine at no cost. P8-5 Part 1 Required: 1. Give all journal entries related to the disposal of each machine in the current year. a. Machine A. b. Machine B. c. Machine C. Required A Required B Required C Give all journal entries related to the disposal of Machine B in the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction December 31 General Journal Accumulated depreciation 2 December 31 Cash Note receivable Gain on disposal of machine Machine B Debit Credit 107,800 43,360 12,141 23,301 140,000 Required A Required B Required C Give all journal entries related to the disposal of Machine A in the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 Transaction January 01 General Journal Accumulated depreciation 2 January 01 Loss on disposal of machine Cash Machine A Requirat A Required B > Debit Credit 18,000 500 8,500 27,000 Required A Required B Required C Give all journal entries related to the disposal of Machine C in the current year. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No. 1 Transaction January 01 General Journal Accumulated depreciation 2 January 01 Loss on disposal of machine Machine C Debit Credit 49,200 27,200 76,400