Question

QS 8-9 Disposal of assets LO P2 Garcia Co. owns equipment that cost $82,000, with accumulated depreciation of $43,400. Garcia sells the equipment for cash. Record the sale of the equipment assuming Garcia sells the equipment for (1) $50,900 cash, (2) $38,600 cash, and (3) $33,500 cash. View transaction list Journal entry worksheet < 1 2 3 Record the sale of equipment assuming Garcia sells the equipment for $50,900 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Cost of equipment Less: Accumulated depreciation Carrying value of equipment $ $ $ 82,000 43,400 38,600 Gain or loss on sale of equipment Sale value $ 50,900 $ 38,600 $ Less: Carrying value of equipment $ 38,600 $ 38,600 $ Gain or (Loss) on sale of equipment $ 12,300 $ - $ 33,500 38,600 (5,100) Transaction Credit Journal Entries Account Title and Explanation | Cash $ Accumulated Depreciation $ Equipment Gain on sale of equipment (To record sale of equipment) Debit 50,900 43,400 $ $ 82,000 12,300 $ $ 38,600 43,400 Cash Accumulated Depreciation Equipment (To record sale of equipment) $ 82,000 No gain or loss Cash Accumulated Depreciation Loss on sale of equipment Equipment (To record sale of equipment) $ $ $ 33,500 43,400 5,100 $ 82,000