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.

No Date General Journal Debit Credit
1 Jan. 2 Gain on disposal of machinery 1,000
Accumulated depreciation 28,000

Answer 1

Dr Accumulated depreciation-Machinery 28,000

Dr Loss on disposal 1000

Cr Cash 1000

Cr Machinery 28,000

Step-by-step explanation:

Based on the information given the appropriate journal entry to record the transaction on On January 2 is :

On January 2

Dr Accumulated depreciation-Machinery 28,000

Dr Loss on disposal 1000

Cr Cash 1000

Cr Machinery 28,000