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

answer; ///i believe the correct two answer are (1) paid in capital; and (2) earned   capital; good luck

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough