79.Maccas Machines sells a machine for $88,000 cash. The machine originally cost $100,000 and its...
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79.Maccas Machines sells a machine for $88,000 cash. The machine originally cost $100,000 and its carrying amount is $64,000. GST is payable on the sale. What are the correct journal entries?
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1.Debit cash $88,000; Debit Accumulated depreciation of Machine $36,000; Credit Machine $100,000; Credit GST $8,000; Credit Gain on sale $16,000
2.Debit cash $88,000; Debit Accumulated depreciation of Machine $64,000; Credit Machine $100,000; Credit GST $8,000; Credit Gain on sale $36,000
3.Debit cash $80,000; Debit Accumulated depreciation of Machine $36,000; Debit GST $16,000; Credit Machine $100,000; Credit Gain on sale $8,000
4.Debit cash $88,000; Debit Machine $25,000; Credit Accumulated depreciation of Machine $10,000; Credit GST $8,000; Credit Gain on sale $16,000
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