On January 2, Bering Co. disposes of a machine costing $40,400 with accumulated depreciation of $21,763. Prepare the entries to record the disposal under each separate situation. The machine is sold for $15,631 cash. The machine is traded in for a new machine having a $56,900 cash price. A $19,238 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance. The machine is traded in for a new machine having a $56,900 cash price. A $14,429 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

Explanation:

1.   Cash   Dr. $15,631

     Accumulated depreciation Dr.$21,763

     Loss on disposal(40,400-21,763-15,631)                  Dr.$3,006

      Machine                    Cr.$40,400

2. Machine-New (56,900-19,238) Dr.$37,662

   Cash      Dr.$19,238

  Accumulated Depreciation  Dr.$21,763

 Machine Old                       Cr.$40,400

Cash     (56,900-19,238)      Cr.$37,662

 Gain on disposal (40,400-21,763-19238)               Cr.$601  

3.  New Machine (56,900-14,429)   Dr.$42,471

    Cash                 Dr.$14,429

 Accumulated Depreciation          Dr.$21,763

 Loss on disposal(40,400-21,763-14,429)                  Dr.$4,208

Machine Old     Cr.$40,400

Cash                 Cr.$42,471

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