Recording Fixed Asset Disposal On April 1, 2020, one of the two large production machines used by Evert Company stripped a gear, causing major internal damage

Recording Fixed Asset Disposal On April 1, 2020, one of the two large production machines used by Evert Company stripped a gear, causing major internal damage. On April 5, 2020, the company decided to purchase a new machine (cost of $146,000) so that production could continue. On January 1, the accounts showed the following for the old machine: original cost, $72,000; accumulated depreciation, $50,400 (20-year life; no residual value). The company did not accept a trade-in offer of $10,800. Instead, the old machine was sold on April 5 to another company for $19,200. Evert spent $2,400 cleaning and $800 moving the machine prior to shipping. Insurance premiums (prepaid) on the old machine were $360; the unused portion of the premium is applied to the new machine. That insurance was paid on January 1 and covered the period January 1 through December 31.

Date Cr. ? 1) > 0 b. Record the entries for Evert Company on April 5, 2020, to dispose of the old machine, including any required updates for depreciation and for insurance expense. Note: Round your answers to the nearest whole number. Note: Record debit accounts in alphabetical order using the first letter of the account name. Account Name Dr. April 5, 2020 Depreciation Expense 900 0 Accumulated Depreciation 900 To update depreciation. April 5, 2020 Insurance Expense Prepaid Insurance To record insurance. April 5, 2020 Accumulated Depreciation 19,200 X Cash 50,400 x Loss on Disposal 4,650 X Equipment 72,000 To record disposal. 90 > > 0 90 ? 0 ? 0 > > > > > 0