Chapter 18, Problem 5CE

Prepare journal entries for the following transactions:

1. a. A machine with a cost of $10,000 and accumulated depreciation of $8,000 was sold for $2,500.
2. b. A machine with a cost of $10,000 and accumulated depreciation of $8,000 was traded for a new machine with a market value of $12,000. Cash of $9,500 was also paid.