Answer:
(a)
Depreciation Expense (Debit): 1,952
Accumulated Depreciation-Machinery (Credit): 1,952
(b)
Cash (Debit): 36,330
Accumulated Depreciation-Machinery (Debit): 12,200
Machinery (Credit): 24,400
Gain of Machinery (Credit): 24,130
Explanation:
A)
Because (10,248 / 2928 = 3.5), we deduce that the depreciation is per month, So:
Depreciation Expense = 2,928 / 12 * 8 = 1,952
B)
Gain of Machinery = Cash - Net Book Value
Gain of Machinery = Cash - (Machinery Cost - Accumulated Depreciation-Machinery)
Gain of Machinery = Cash - Machinery Cost + Accumulated Depreciation-Machinery
Gain of Machinery = 36,330 - 24,000 + 12.000
Gain of Machinery = 24,130
