Question

Main Menu De Homework 54000 OBC OC Cash .000 .000 18.000 .000 .000 w 36 tion command command

Answer 1

Answer

• Cost of equipment is $ 50000 will be credited.
• Book Value is $ 19000 which means Accumulated DepreciATION balance = $ 50000 – 19000 = $ 31000 will be DEBITED.
• Sold for $ 23000 hence Cash will be debited by $ 23000
• Book value is $ 19000 and is sold for $ 23000. This means there is a GAIN on sale of $ 4000 which will be Credited.
• Correct Answer = Option ‘A’
  Debit Cash $ 23000
  Debit Accumulated Depreciation $ 31000
  Credit Equipment $ 50000
  Credit Gain on sale $ 4000