Prepare journal entries to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) Echo Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,200 instead of 41,000.

The journals to be recorded are as follows:

(a) Debit Accumulated depreciation                    $41,000

    Credit Equipment                                             $41,000

(b) Debit Accumulated depreciation                    $37,200

    Debit Loss on disposal [$41,000 - $37,200]    $3,800

    Credit Equipment                                              $41,000

(To recognize the disposals of the company's equipment)

Explanation:

Retiring company's asset otherwise means to dispose of the assets. Disposal of an asset can be as a result of being fully depreciated, wear and tear, obsolescence, new technological improvement, idleness of the assets, etc.

(a) In part (a) of the question, the asset was fully depreciated without salvage value, so there is zero gain or loss on disposal. The relevant accounting entries are as recorded above.

(b) Here, the accumulated depreciation was less than the cost, meaning the asset was not fully depreciated, which can be as a result of any of the reasons cited above. The company therefore realized a loss of $3,800 upon disposal.

reducing the scale of the market for a new product.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.