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Please notice that for 4 out of the 6 journal entries says January 1st.

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: Asset Machine A Machine B Machine C Original Cost $ 30,000 65,000 75,300 Residual Value $ 3,000 4,000 6,000 Estimated Life 10 years 8 years 16 years Accumulated Depreciation (straight line) $21,600 (8 years) 45,750 (6 years) 51,975 (12 years) The machines were disposed of during the current year in the following ways: a. Machine A: Sold on January 1 for $7,800 cash. b. Machine B: Sold on December 31 for $12,325; received cash, $2,200, and a $10,125 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. Record the depreciation of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Record the disposal of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Record the depreciation of Machine B. Note: Enter debits before credits. Transaction General Journal Debit Credit December 31 Record the disposal of Machine B. Note: Enter debits before credits. Transaction General Journal Debit Credit December 31 Record the depreciation of Machine C. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01 Record the disposal of Machine C. Note: Enter debits before credits. Transaction General Journal Debit Credit January 01

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