Business, 31.03.2020 01:58 hardwick744

Diaz Company owns a milling machine that cost $125,300 and has accumulated depreciation of $90,600. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $16,100 cash. Diaz sold the machine for $34,700 cash. Diaz sold the machine for $40,300 cash.

Answers: 2

Show answers

Answers

Answer from: ValeryGi3721

Situation 1: Diaz sold the machine for $16,100 cash

January 3

Dr. Cash $16,100

Dr. Loss on Disposal $18,600

Dr. Accumulated Depreciation $90,600

Cr. Machine $125,300

Situation 2: Diaz sold the machine for $34,700 cash.

January 3

Dr. Cash $34,700

Dr. Accumulated Depreciation $90,600

Cr. Machine $125,300

Situation 3: Diaz sold the machine for $40,300 cash

January 3

Dr. Cash $40,300

Dr. Accumulated Depreciation $90,600

Cr. Gain on Disposal $5,600

Cr. Machine $125,300

Explanation:

Accumulated depreciation is the sum of all the depreciation charged against the asset. This contra asset value. The asset is reported on the balance sheet after adjusting this value.

Situation 1 :

Machine is sold at loss, which is calculated as below

Net Book value of Machine = $125,300 - $90,600 = $34,700

$16,100 cash is received against the NBV of machine

Loss on machine = $34,700 - $16,100 = $18,600

Situation 2 :

Machine is sold at No gain no loss, which is calculated as below

Net Book value of Machine = $125,300 - $90,600 = $34,700

$34,700 cash is received against the NBV of machine, so there is no gain no loss on the disposal

Situation 3 :

Machine is sold at gain, which is calculated as below

Net Book value of Machine = $125,300 - $90,600 = $34,700

$40,300 cash is received against the NBV of machine

Loss on machine = $40,300 - $34,700 = $5,600

Answer from: Quest

answer; ///blank(1) longer; blank(2); lessi believe this is correct, plz check first; good luck';

Answer from: Quest

answer; sales of books;

Other questions on the subject: Business

Business, 22.06.2019 13:00, dondre54

Explain the relationship between consumers and producers in economic growth and activity

Answers: 1

continue

Business, 22.06.2019 13:40, LilFabeOMM5889

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Answers: 1

continue

Business, 22.06.2019 17:40, treestump090

Aproduct has a demand of 4000 units per year. ordering cost is $20, and holding cost is $4 per unit per year. the cost-minimizing solution for this product is to order: ? a. 200 units per order. b. all 4000 units at one time. c. every 20 days. d. 10 times per year. e. none of the above

Answers: 3

continue

Business, 22.06.2019 18:10, zaratayyibah

Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

Answers: 1

continue

You know the right answer?

Diaz Company owns a milling machine that cost $125,300 and has accumulated depreciation of $90,600....