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York Instruments completed the following transactions and events involving its machinery. 2012
Jan. 1 Paid $ 107,800 cash plus $ 6,470 in sales tax for a new machine.The machine is estimated to have a six year life and a $ 9,720 salvage value.
Dec. 31 Recorded annual straight line depreciation on the machinery.
2013 Dec. 31 Due to new information obtained earlier in the year, the machine's estimated useful life was changed from six to four years, and the estimated salvage value was increased to $ 14,345. Recorded annual straight line depreciation on the machinery.
2014 Dec. 31 Recorded annual straight line depreciation on the machinery.
Dec. 31 Sold the machine for $ 25,240 cash.
Required:
Prepare journal entries to record these transactions and events.
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