Question

practice exam questions , help would be really appreicated and returned with a thumbs up!! thanks in advance

Help 3 Garcia Co. owns equipment that cost $82,800, with accumulated depreciation of $43,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $51,500 cash, (2) $39,000 cash, and (3) $33,900 cash. ts View transaction list 02:55:35 Journal entry worksheet < А > Record the sale of equipment assuming Garcia sells the equipment for $51,500 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 View general Journal Record entry Clear entry Next > 3 of 11 < Prey

Answer 1

Solution:

Cost of Equipment Accumulated Depreciation Carrying Value' 82800 43800 39000 Sale of Equipment 51500 Journal Entry Cash 51500 Accumulated Depreciation - Equipment 43800 Gain on Sale of Equipment 12500 Equipment 82800 Here equipment is sold at a value higher than the carrying value, hence a gain Sale of Equipment 39000 39000 Journal Entry Cash Accumulated Depreciation - Equipment Equipment Equioment sold at the carrying value. No gain or loss 43800 82800 Sale of Equipment 33900 Journal Entry Cash 33900 Accumulated Depreciation - Equipment 43800 Loss on Sale of Equipment 5100 Equipment Equipment sold at a price lower than the carrying value, hence a loss. 82800

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