Diaz Company owns a machine that cost $126,200 and has accumulated depreciation of $90,400. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation.

1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.
2. Diaz sold the machine for $15,600 cash.
3. Diaz sold the machine for $35,800 cash.
4. Diaz sold the machine for $40,800 cash.

Journal entry worksheet

• Record the disposal of the machine receiving nothing in return.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01