Question

Diaz Company owns a machine that cost $126,300 and has accumulated depreciation of $93,900. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. 1. The machine needed extensive repairs and was not worth repairing Diaz disposed of the machine, receiving nothing in return. 2. Diaz sold the machine for $16,100 cash. 3. Diaz sold the machine for $32,400 cash. 4. Diaz sold the machine for $41,500 cash. View transaction list Journal entry worksheet 1 2. 3 4 Record the disposal of the machine receiving nothing in return COL Note: Enter debts before credits Date Jan 01 General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Event	General Journal				Debit	Credit
1)	Accumulated depreciation				93,900
	loss on disposal				32,400
	Milling machine					126,300
2)	cash				16,100
	Accumulated depreciation				93,900
	loss on disposal				16,300
	Milling machine					126,300
3)	cash				32,400
	Accumulated depreciation				93,900
	Milling machine					126,300
4)	cash				41,500
	Accumulated depreciation				93,900
	Gain on disposal					9,100
	Milling machine					126,300