Question

Concord has an old factory machine that cost $56,750. The machine has accumulated depreciation of $31,780. Concord has decided to sell the machine. a) what entry would concord make to record the sale of the machine for $28,375 cash? B) what entry would concord make to record the sale of the machine for $17,025 cash?

Answer 1

1.Cash a/c..Dr$28375

Accumulated depreciation a/c...Dr$31780

To machine $56750

To gain on sale $3405(balance).

2.Cash a/c..Dr$17025

Accumulated depreciation a/c...Dr$31780

Loss on sale ..Dr$7945(balance)

To machine $56750.