Question

Exercise 10-16 Disposal of assets LO P2 Diaz Company owns a milling machine that cost $126,600 and has accumulated depreciation of $91,400. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. 1. The machine needed extensive repairs, and it was not worth repairing Diaz disposed of the machine, receiving nothing in return 2. Diaz sold the machine for $17,300 cash. 3. Diaz sold the machine for $35.200 cash. 4. Diaz sold the machine for $41,200 cash. View transaction list Journal entry worksheet 2 3 4 Record the disposal of the machine receiving nothing in return. Note: Enter debits before credits. General Journal Debit Credit Date Jan 03 | Record entry Clear entry View general journal

Answer 1

Date	General Journal	Debit	Credit
Jan 03	Accumulated Depreciation - Milling Machine	$91,400
	Loss on Disposal of Milling machine	$35,200
	... Milling Machine		$126,600
	(To record the dispose of machine)
Jan 03	Cash	$17,300
	Accumulated Depreciation - Milling Machine	$91,400
	Loss on sale of machine	$17,900
	... Milling Machine		$126,600
	(To record the sale of machine)
Jan 03	Cash	$35,200
	Accumulated Depreciation - Milling Machine	$91,400
	... Milling Machine		$126,600
	(To record the sale of machine)
Jan 03	Cash	$41,200
	Accumulated Depreciation - Milling Machine	$91,400
	... Gain on sale of machine		$6,000
	... Milling Machine		$126,600
	(To record the sale of machine)