Marigold Company has an old factory machine that cost $61,750. The machine has accumulated depreciation of $34,580. Marigold 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 Marigold make to record the sale of the machine for $30,875 cash? (b) What entry would Marigold make to record the sale of the machine for $18,525 cash?

a. Debit Other income/disposal account (p/l)   $61,750

Credit Fixed Asset account  $61,750

Being entries to derecognize the cost of the old factory sold

Debit Accumulated depreciation account  $34,580

Credit Other income/disposal account (p/l)  $34,580

Being entries to derecognize the accumulated depreciation of the asset at the date of disposal

Debit Cash account   $30,875

Credit Other income/disposal account (p/l)   $30,875

Being entries to record cash received on sale of old factory

b.  Debit Other income/disposal account (p/l)   $61,750

Credit Fixed Asset account  $61,750

Being entries to derecognize the cost of the old factory sold

Debit Accumulated depreciation account  $34,580

Credit Other income/disposal account (p/l)  $34,580

Being entries to derecognize the accumulated depreciation of the asset at the date of disposal

Debit Cash account   $18,525

Credit Other income/disposal account (p/l)   $18,525

Being entries to record cash received on sale of old factory

Explanation:

The carrying amount or net book value of an asset is the difference between the historical cost of the asset and the accumulated depreciation. When an asset is disposed, this carrying amount has to be derecognized and the proceed from the sale recognized. The difference between these two amounts is the gain/loss on disposal.

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal. The proceed from the disposal of an asset may be recorded in the disposal or other income account.

On disposal, the carrying amount of the asset is derecognized by  

Debit Other income/disposal account (p/l)

Credit Asset account  

with the cost of the asset, then,

Debit Accumulated depreciation account

Credit Other income/disposal account (p/l)

With the accumulated depreciation of the asset at the date of disposal,

Furthermore,

Debit Cash account

Credit Other income/disposal account (p/l)

with the amount received from the disposal or sale of the asset

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; ///after donning a gown, mask and eyewear;