Diaz Company owns a milling machine that cost $126,300 and has accumulated depre

Question

Diaz Company owns a milling machine that cost $126,300 and has accumulated depreciation of $91,000. 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 th ,600 cash. 3. Diaz sold the machine for S35,300 cash. 4. Diaz sold the machine for $40,800 cash. e machine for $15 View transaction list Journal entry worksheet ?? Record the disposal of the machine receiving nothing in return. Note: Enter debits before credits Date General Journal Debit Credit Jan 03 Record entry Clear entry View general journal

Explanation / Answer

Date General Journal Debit Credit 3-Jan Loss on disposal of milling machine 35,300 Accumulated depreciation—Milling machine 91,000 Milling machine 126,300 3-Jan Cash 15,600 Loss on disposal of milling machine 19,700 Accumulated depreciation—Milling machine 91,000 Milling machine 126,300 3-Jan Cash 35,300 Accumulated depreciation—Milling machine 91,000 Milling machine 126,300 3-Jan Cash 40,800 Accumulated depreciation—Milling machine 91,000 Gain on sale of milling machine 5,500 Milling machine 126,300

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