Diaz company owns a machine that cost $250,000 and has accumulated depreciation of $182,000. prepare the entry to record the disposal of the machine on january 1 in each seperate situation.

the machine needed extensive repairs and was not worth repairing. diaz disposed of the machine, receiving nothing in return.

diaz sold the machine for $35,000 cash.
diaz sold the machine for $68,000 cash.
diaz sold the machine for $80,000 cash.

A journal entry is a record of a company's or firm's financial activities kept in its accounting books. The first stage in the accounting cycle is to make a journal entry.

The sale of machine for cash is being entered in the journal, the image of the journal entries passed is attached below. Kindly go through it.

For more information related to the journal entries regarding the sale of machines, refer to the link:

link

Explanation:

The journal entries are shown below:

1. Accumulated Depreciation A/c Dr $182,000

 Loss on disposal of machine A/c Dr $68,000

         To Machine A/c                                $250,000

(Being the machine disposed off)

2. Accumulated Depreciation A/c Dr $182,000

  Loss on disposal of machine A/c Dr $33,000

  Cash A/c Dr $35,000

         To Machine A/c                                $250,000

(Being machine sold for $35,000)

3. Accumulated Depreciation A/c Dr $182,000

  Cash A/c Dr $68,000

         To Machine A/c                                $250,000

(Being machine sold for $68,000)

4. Accumulated Depreciation A/c Dr $182,000

  Cash A/c Dr $80,000

         To Machine A/c                                $250,000

         To profit on disposal of machine A/c Dr $12,000

(Being machine sold for $80,000)

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