Millworks Company owns a milling machine that cost $125,00 and has accumulated d
ID: 2375014 • Letter: M
Question
Millworks Company owns a milling machine that cost $125,00 and has accumulated depreciation of 91,000. Prepare the entry to record the disposal of the milling machine on Janurary 5 under each of the folling undependent situations.1. The machine needed extensive repairs, and it was not worth repairing. Millworks disposed of the machine, receiving nothing in return.2. Nukkwirjs sikd the machine for 17,500 cash3. Millworks sold the machine for 34,000 cash4. Millworks sold the machine for 40,000 cash
Explanation / Answer
Debit: Accumulated Depreciation - milling machine 91,000
Debit: Cash 40,000
Credit: Milling machine 125,000
Credit: Gain on sale 6,000