Concord Company has an old factory machine that cost $58,000. The machine has accumulated depreciation of...

Concord Company has an old factory machine that cost $58,000. The machine has accumulated depreciation of $32,480. Concord 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.) (a) What entry would Concord make to record the sale of the machine for $29,480 cash? (b) What entry would Concord make to record the sale of the machine for $19,480 cash?

Expert Solution

Answer

No	Accounts title and explanation	Debit	Credit
(a)	Cash	$29,480
	Accumulated Depreciation	$32,480
	Gain on sale of machine		$ 3,960
	Machine		$58,000

b)	Cash	$19,480
	Accumulated Depreciation	$32,480
	Loss on sale of machine	$ 6,040
	Machine		$58,000

Working

(A) Sale at $ 29480
Cost	$ 58,000
Accumulated depreciation	$ 32,480
Book value	$ 25,520

Sales price	$ 29,480
Book value	$ 25,520
Gain /(loss)	$ 3,960


(B) Sale at $ 19480
Cost	$ 58,000
Accumulated depreciation	$ 32,480
Book value	$ 25,520

Sales price	$ 19,480
Book value	$ 25,520
Gain /(loss)	-$ 6,040

ekkarill92 answered 2 years ago

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