Answer:
A) It is sold for $23,000 cash.
Cash = dr $23,000
Accumulated Depreciation - Machinery = dr $221,200
Loss on sale of Machinery = dr $55,800
Machinery = cr $300,000
B) It is sold for $92,000 cash.
Cash = dr $92,000
Accumulated Depreciation - Machinery = dr $221,200
Gain on sale of Machinery = cr $13,200
Machinery = cr $300,000
C) Destroyed in fire.
Cash = dr $33,500
Accumulated Depreciation - Machinery = dr $221,200
Loss from fire = dr $45,300
Machinery = cr $300,000
Explanation:
All the account titles and explanations should be classified into debit (dr) or credit (cr) depending on the case scenario.
The machine in use over a space of time depreciates at $221,200 and it was bought for $300,000
