Diaz Company owns a machine that cost $125,500 and has accumulated depreciation of $91,800. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation.

1.

Accumulated Depreciation $91,800

Loss on Disposal $33,700

Machine Account $125,500

2.

Cash $35,000

Accumulated Depreciation $91,800

Profit on Disposal $1,300

Machine Account $125,500

3.

Cash $68,000

Accumulated Depreciation $91,800

Profit on Disposal $34,300

Machine Account $125,500

4.

Cash $80,000

Accumulated Depreciation $91,800

Profit on Disposal $46,300

Machine Account $125,500

Explanation:

The situations were missing which were as follow:

1. The machine needed extensive repairs, and it was not worth repairing. Diaz disposed of the machine, receiving nothing in return.

2. Diaz sold the machine for $35,000 cash.

3. Diaz sold the machine for $68,000 cash.

4. Diaz sold the machine for $80,000 cash.

Journal Entries are made according to these.