! Required Information P8-6 (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, Merkley 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 Original Residual Estimated Depreciation Asset Cost Value Life (straight line) Machine 2 $ 30,000 $ 2,000 8 years $20, 250 (6 years) Machine B 45,000 4,000 10 years 32,800 (B years) Machine C 76,200 6,900 15 years 55,520 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $9.350 cash. b. Machine B: Sold on December 31 for $8,600: recelved cash, $2,000, and a $6.600 Interest-bearing (12 percent) note recelvable due at the end of 12 months. C. Machine C: On January 1, this machine suffered ireparable damage from an accident. On January 10, a salvage company removed the machine at no cost. P8-6 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. P8-6 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. Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required Give all journal entries related to the disposal of Machine A in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No General Journal Credit Transaction January 01 Cash x Debit 9,350 20,250 Accumulated depreciation, Machine A B January 01 400 Loss on disposal of machine Equipment (Machine A) 27,000 X X Red text indicate ne ras was expected in a cellor a formula bead calcula en la incercet; ne point deduced P8-6 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. Complete the following questions by preparing worksheet and journal entries given below. Required A Required B Required Give all journal entries related to the disposal of Machine B in the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Credit Transaction December 31 General Journal Accumulated depreciation, Machine B Debit 36,900 A X B December 31 Cash Note receivable Accumulated depreciation, Machine B Equipment (Machine B) Gain on disposal of machine 2,000 6,800 38,900 OOOO 45,000 500