Martinez Company has an old factory machine that cost $66,000. The machine has accumulated depreciation of $36,960. Martinez 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 Martinez make to record the sale of the machine for $33,000 cash?
(b)What entry would Martinez make to record the sale of the machine for $19,800 cash?

(a) the sale of the machine for $33,000 cash

Cash $33,000 (debit)

Accumulated Depreciation $36,960 ( debit)

Profit on Sale of Machine $ 3,960 (credit)

Machine $66,000 (credit)

(b) the sale of the machine for $19,800 cash

Cash $19,800 (debit)

Accumulated Depreciation $36,960 ( debit)

Loss on Sale of Machine $9,240 (debit)

Machine $66,000 (credit)

Explanation:

On Sale of Asset the Following takes place :

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%