On January 1, 2021, Riverbed Company purchased on credit machinery costing $165,000 and incurred $5,705 in installation costs.

The machinery has an estimated useful life of 15 years and a residual value of $10,790. The company uses the straight-line method of depreciation. At the end of 2022, Riverbed recorded depreciation and assessed the asset, determining a recoverable amount of $137,800. Riverbed sold the equipment to Voile Corporation on June 30, 2023, for $135,500.

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On January 1, 2021, Riverbed Company purchased on credit machinery costing $165,000 and incurred $5.705 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,790. The company uses the straight-line method of depreciation. At the end of 2022, Riverbed recorded depreciation and assessed the asset, determining a recoverable amount of $137,800. Riverbed sold the equipment to Voilex Corporation on June 30, 2023, for $135,500. Prepare the necessary entries assuming Riverbed has a December 31 year-end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date 2021 Account Titles and Explanation Machinery Cash 1.2021 Depreciation Expense 31.2022 Accumulated Depreciation-Machinery (To record depreciation expense) Depreciation Expense Accumulated Depreciation Machinery (To record depreciation expense) 31, 2022 Loss on Impairment Accumulated Depreciation-Machinery ne 30, 2023 (To record loss on impairment) Depreciation Expense 230,2023 Accumulated Depreciation-Machinery (To record depreciation expense) Cash Accumulated Depletion Machinery Gain on Disposal of Machinery (To record disposal of machinery) Debit 165000 5705 10661 Credit 165000 5705 10661 On January 1, 2021, Riverbed Company purchased on credit machinery costing $165,000 and incurred $5.705 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,790. The company uses the straight-line method of depreciation. At the end of 2022, Riverbed recorded depreciation and assessed the asset, determining a recoverable amount of $137,800. Riverbed sold the equipment to Voilex Corporation on June 30, 2023, for $135,500. Prepare the necessary entries assuming Riverbed has a December 31 year-end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Round answers to O decimal places, eg. 5,275. Record journal entries in the order presented in the problem.) Date 2021 Account Titles and Explanation Machinery Cash 1.2021 Depreciation Expense 31.2022 Accumulated Depreciation-Machinery (To record depreciation expense) Depreciation Expense Accumulated Depreciation Machinery (To record depreciation expense) 31, 2022 Loss on Impairment Accumulated Depreciation-Machinery ne 30, 2023 (To record loss on impairment) Depreciation Expense 230,2023 Accumulated Depreciation-Machinery (To record depreciation expense) Cash Accumulated Depletion Machinery Gain on Disposal of Machinery (To record disposal of machinery) Debit 165000 5705 10661 Credit 165000 5705 10661