During the current year, Martinez Company disposed of two different assets. On January 1, prior...
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During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following Accumulated Asset Machine A Machine B Original Residual Estimated Depreciation (straight Life 15 years 8 years Cost $85,200 29,000 Value $10,300 3,800 line) $64,913 (13 years) 18,900 (6 years) The machines were disposed of in the following ways a. Machine A: Sold on January 2 for $29,000 cash b. Machine B: On January 2, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost. Required 1. & 2. Prepare the journal entries related to the disposal of Machine A and B on the January 2 of the current year. TIP: When no cash is received on disposal, the loss on disposal will equal the book value of the asset at the time of disposal. (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 disposal of Machine A for $29,000 cash on January 2, 2014 Note: Enter debits before credits. Date General Journal Debit Credit Jan 02
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