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What are the correct Journal Entries for these 2 transactions. Decided to sell second line of...

What are the correct Journal Entries for these 2 transactions.

Decided to sell second line of consulting business. Found a buyer for second line of consulting services. Sold the business in exchange for $20,000 cash, the business and the machine (3/1) was sold. This resulted in a loss of $20,000.    

Started up a second line of consulting services. Sold and received $300,000 in total for the year in consulting services and paid related misc. expenses of $350,000. This summarizes all revenues and expense of business #2. All in cash.   Purchased a machine for business 2 for $40,000 cash.

Thank you

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Answer #1

Entry for Transaction No 1

Bank A/c Dr.

Consulting Service Business Dr.

MAchine Dr

Loss Dr

To Second line of Consulting Business

Entry for Transaction No 2

Bank Dr.    $3,00,000

   To Revenue $ 3,00,000

Expense Dr. $3,50,000

   To Bank $ 3,50,000

Machine Dr.    $ 40,000

To Bank    $ 40,000

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