Walsh Instruments completed the following transactions and events involving its machinery. 2010 Jan. 1 Paid $20,515 cash

Question:

Walsh Instruments completed the following transactions and events involving its machinery.
2010
Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new machine. The machine is estimated to have a five-year life and a $2,000 .
Dec. 31 Recorded annual straight-line depreciation on the machinery.
2011
Dec. 31 Due to new information obtained earlier in the year, the machine’s estimated useful life was changed from five to four years, and the estimated was increased to $2,550. Recorded annual straight-line depreciation on the machinery.
2012
Dec. 31 Recorded annual straight-line depreciation on the machinery.
Dec. 31 Sold the machine for $5,600 cash.
Required
Prepare journal entries to record these transactions and events.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...