Question

Garcia Co. owns equipment that cost $80,000, with accumulated depreciation of $42,400. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $49,400 cash, (2) $37,600 cash, and (3) $32,500 cash View transaction list Journal entry worksheet A B C Record the sale of equipment assuming Garcia sells the equipment for $49,400 cash Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

Answer 1

Book value = Cost - Accumulated Depreciation = 80,000 - 42,400 = 37,600

A	Cash	49,400
	Accumulated Depreciation	42,400
	Gain on sale of equipment		11,800
	Equipment		80,000
B	Cash	37,600
	Accumulated Depreciation	42,400
	Equipment		80,000
C	Cash	32,500
	Accumulated Depreciation	42,400
	Loss on sale of asset	5,100
	Equipment		80,000

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