10.

On January 2, Bering Co. disposes of a machine costing $47,200 with accumulated depreciation of $25,426. Prepare the entries to record the disposal under each separate situation.

1. The machine is sold for $18,262 cash.
2. The machine is traded in for a new machine having a $63,700 cash price. A $22,476 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.
3. The machine is traded in for a new machine having a $63,700 cash price. A $16,857 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

Required 1 - Journal Entry Worksheet

Record the sale of the machine for $18,262 cash.

Required 2 - Journal Entry Worksheet

Record the exchange assuming that the exchange has commercial substance.

Required 3 - Journal Entry Worksheet

Record the exchange assuming that the exchange has commercial substance.