13. Diaz Company owns a milling machine that cost $125,300 and has accumulated d
ID: 2484734 • Letter: 1
Question
13. Diaz Company owns a milling machine that cost $125,300 and has accumulated depreciation of $94,700. 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.
Record the disposal of the machine receiving nothing in return.
Record the sale of the machine for $16,500 cash.
Record the sale of the machine for $30,600 cash.
Record the sale of the machine for $40,400 cash.
13. Diaz Company owns a milling machine that cost $125,300 and has accumulated depreciation of $94,700. Prepare the entry to record the disposal of the milling machine on January 3 under each of the following independent situations.
Explanation / Answer
Date
Account title and explanation
Debit
Credit
1
Jan-03
Accumulated depreciation
$ 94,700
Loss on disposal of milling machine
$ 30,600
Milling machine
$ 125,300
2
Jan-03
Cash
$ 16,500
Accumulated depreciation
$ 94,700
Loss on disposal of milling machine
$ 14,100
Milling machine
$ 125,300
3
Jan-03
Cash
$ 30,600
Accumulated depreciation
$ 94,700
Milling machine
$ 125,300
4
Jan-03
Cash
$ 40,400
Accumulated depreciation
$ 94,700
Milling machine
$ 125,300
Gain non disposal of milling machine
$ 9,800
Date
Account title and explanation
Debit
Credit
1
Jan-03
Accumulated depreciation
$ 94,700
Loss on disposal of milling machine
$ 30,600
Milling machine
$ 125,300
2
Jan-03
Cash
$ 16,500
Accumulated depreciation
$ 94,700
Loss on disposal of milling machine
$ 14,100
Milling machine
$ 125,300
3
Jan-03
Cash
$ 30,600
Accumulated depreciation
$ 94,700
Milling machine
$ 125,300
4
Jan-03
Cash
$ 40,400
Accumulated depreciation
$ 94,700
Milling machine
$ 125,300
Gain non disposal of milling machine
$ 9,800
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.