Diaz company owns a milling machine that cost $250,000 and has accumulated depreciation of $182,00. 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 $35,000 cash.
3. diaz sold the machine for $68,000 cash.
4. diaz sold the machine for $80,000 cash.

Explanation:

The journal entries are shown below:

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

   Loss on machine A/c Dr $68,000

              To Machine A/c $250,000

(Being the dispose of the machine is recorded)

2. Cash A/c Dr $35,000

   Accumulated depreciation A/c Dr $182,000

   Loss on machine A/c Dr $33,000

              To Machine A/c $250,000

(Being the sale of the machine is recorded)

3. Cash A/c Dr $68,000

   Accumulated depreciation A/c Dr $182,000

              To Machine A/c $250,000

(Being the sale of the machine is recorded)

4.  Cash A/c Dr $80,000

   Accumulated depreciation A/c Dr $182,000

              To Machine A/c $250,000

              To  Profit on machine A/c Dr $12,000

(Being the sale of the machine is recorded)

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate