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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: Original Hesidual Estimated Accumulated Depreciation Asset Cost Value Life (straight-line) Machine $32,000 $3,200 5 years $23,040 (4 years) Machine B 61,200 3,100 14 years $45,650 (11 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $9,500 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.) 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.) View transaction list Journal entry worksheet 1 2 3 4 > Record the current year depreciation for Machine A prior to disposal. Note: Enter debits before credits General Journal Date January 01 Debit Credit Cash Accumulated Depreciation Buildings (Gain on Disposal of PPE 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.) View transaction list Journal entry worksheet 2 3 4 Machine A: Sold on January 1 for $9,500 cash. Record the transaction. Note: Enter debits before credits General Journal Dobit Credit Dato January 01 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.) View transaction list Journal entry worksheet Record the current year depreciation for Machine B prior to disposal. Note: Enter debits before credits. General Journal Debit Credit Dato January 01 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.) View transaction list Journal entry worksheet

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