Diaz Company owns a machine that cost $126,800 and has accumulated depreciation of $94,000. Prepare the entry to record the disposal of the machine on January 1 in each separate 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 $16,000 cash.
3. Diaz sold the machine for $32,800 cash.
4. Diaz sold the machine for $40,900 cash.

Journal entry worksheet Record the sale of the machine for $32,800 cash. Note: Enter debits before credits