On January 1, 2021, Sheffield Company purchased on credit machinery costing $171,000 and incurred $5,845 in...

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On January 1, 2021, Sheffield Company purchased on credit machinery costing $171,000 and incurred $5,845 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,050. The company uses the straight-line method of depreciation. At the end of 2022, Sheffield recorded depreciation and assessed the asset, determining a recoverable amount of $143,000. Sheffield sold the equipment to Voilex Corporation on June 30, 2023, for $140,700. Prepare the necessary entries assuming Sheffield 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 Account Titles and Explanation (To record depreciation expense) Debit Credit (To record depreciation expense) (To record depreciation expense) (To record loss on impairment) (To record depreciation expense) Q Search e F O . e (To record loss on impairment) (To record depreciation expense) (To record disposal of machinery) On January 1, 2021, Sheffield Company purchased on credit machinery costing $171,000 and incurred $5,845 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,050. The company uses the straight-line method of depreciation. At the end of 2022, Sheffield recorded depreciation and assessed the asset, determining a recoverable amount of $143,000. Sheffield sold the equipment to Voilex Corporation on June 30, 2023, for $140,700. Prepare the necessary entries assuming Sheffield 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 Account Titles and Explanation (To record depreciation expense) Debit Credit (To record depreciation expense) (To record depreciation expense) (To record loss on impairment) (To record depreciation expense) Q Search e F O . e (To record loss on impairment) (To record depreciation expense) (To record disposal of machinery)