On January 2, Bering Co. disposes of a machine costing $41,100 with accumulated depreciation of $22,140. Prepare the entries to record the disposal under each separate situation. 1. The machine is sold for $15,902 cash. 2. The machine is traded in for a new machine having a $57,600 cash price. A $19,571 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 $57,600 cash price. A $14,679 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 The machine is sold for $15,902 cash. View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Jan 02 Cash Loss on sale of machinery Accumulated depreciation-Machinery (old) Machinery (old) 15,902 3,058 22,140 41,100 Required 1 Required 2 > No Date General Journal Debit Credit 1 Jan 02 57,600 22,140 Machinery (new) Accumulated depreciation-Machinery (old) Gain on exchange of machinery Machinery (old) Cash 41,100 No Date General Journal Debit Credit 1 Jan 02 Machinery (new) Accumulated depreciation-Machinery (old) Loss on exchange of machinery Machinery (old) Cash