Question

On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Accumulated depreciation - machine A/c Dr $28,000

Loss on disposal of machine A/c $1,000

         To Cash $1,000

         To Machinery A/c $28,000

(Being the disposal of machinery is recorded)

For disposal of machinery, we debited the accumulated depreciation, loss on disposal of machine and credited the cash account and machinery account