Question

Martinez Company has an old factory machine that cost $66,000. The machine has accumulated depreciation of $36,960. Martinez has decided to sell the machine. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Journal entries

Step-by-step explanation:

The journal entries are as follows

(a) Cash A/c Dr $33,000

Accumulated depreciation A/c Dr $36,960

To Factory machine A/c $66,000

To Profit on sale of factory machine A/c $3,960

(Being the sale of machinery is recorded and the remaining balance is credited to the profit on sale of factory machine account)

(b) Cash A/c Dr $19,800

Loss on sale of factory machine A/c $9,240

Accumulated depreciation A/c Dr $36,960

To Factory machine A/c $66,000

(Being the sale of machinery is recorded and the remaining balance is debited to the loss on sale of factory machine account)