Question
In: Accounting
equipment costing $60,000 with a book value of $16,000 is sold for $21,000 which journal entry...
equipment costing $60,000 with a book value of $16,000 is sold for $21,000 which journal entry is used to record the sale?
Solutions
Expert Solution
Journal Entry to Record the Sale of Equipment
| S.No. | Particulars | Debit | Credit |
| 1 | Cash / Bank A/C..Dr | 21,000 | |
| Accumulated Depreciation on Equipment A/C..Dr | 44,000 | ||
| To Equipment A/C | 60,000 | ||
| To Gain on Sale of Equipment | 5,000 | ||
| (Being Sale of Equipment Recorded) |
Supporting Work and Explanation:-
As the Asset which was purchased for $ 60,000 is now of $ 16,000 because the value of Equipment has been depreciated due to continuous use of Equipment and the wear and tear of Asset.
As the Equipment which is having value of $ 16,000 have been sold for $ 21,000 which means there is gain on sale of Equipment because the Equipment has ben sold for amount more than its current book value.
The following Amount are Calculated for the completion of Journal Entry of Sale
Accumulated Depreciation on Equipment = Cost of Equipment - Book Value of Equipment
Book Value of Equipment = $ 16,000
Cost of Equipment = $ 60,000
Accumulated Depreciation on Equipment = 60,000 - 16,000
Accumulated Depreciation on Equipment = 44,000
Gain on Sale of Equipment = Sales Price of Equipment - Book Value of Equipment
Sales Price of Equipment = $ 21,000
Book Value of Equipment = $ 16,000
Gain on Sale of Equipment = 21,000 - 16,000
Gain on Sale of Equipment = $ 5,000
ekkarill92 answered 2 years agoRelated Solutions
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
BRAND purchased equipment for $290,000 cash, sold equipment costing $150,000 with a book value of $100,000,...
BRAND purchased equipment for $290,000 cash, sold equipment
costing $150,000 with a book value of $100,000, and declared and
paid dividends during 2021. No new notes payable were issued during
the year.
Financial data follows. All balances are
normal.
Balance Sheet
Dec. 31, 2021
Dec. 31, 2020
Change
Cash
$ 36,000
$29,000
$ 7,000
Accounts receivable
125,000
97,000
28,000
Inventory
100,000
114,000
(14,000)
Equipment
740,000
600,000
140,000
Accum. depreciation
370,000
220,000
150,000
Accounts payable
170,000
150,000
20,000
Unearned revenue
74,000
44,000
30,000
Accrued...
Bonds with a face value of $1,000,000 are sold at 98. What is the journal entry...
Bonds with a face value of $1,000,000 are sold at 98. What is
the journal entry to record the sale of the bonds?
Cash
1,000,000
Gain on Sale of
Bonds
20,000
Bonds
Payable
980,000
Cash
980,000
Loss on Sale of
Bonds
20,000
Bonds
Payable
1,000,000
Cash
980,000
Bonds
Payable
980,000
Cash
1,000,000
Bonds
Payable
1,000,000
A corporation has Bonds Payable with a face value of $1,000,000
and an amortized cost
( carrying value ) of...
Equipment costing $60,000 with a salvage value of $12,000 and an estimated life of 8 years...
Equipment costing $60,000 with a salvage value of $12,000 and an
estimated life of 8 years has been depreciated using the
straight-line method for 2 years. Assuming a revised estimated
total life of 5 years and no change in the salvage value, the
depreciation expense for Year 3 would be
A.
$16,000.
B.
$9,600.
C.
$7,200.
D.
$12,000.
1.Equipment with a book value of $82,000 and an original cost of $161,000 was sold at...
1.Equipment with a book value of $82,000 and an original cost of
$161,000 was sold at a loss of $33,000. Paid $100,000 cash for a
new truck. Sold land costing $310,000 for $405,000 cash, yielding a
gain of $95,000. Long-term investments in stock were sold for
$92,100 cash, yielding a gain of $14,000. Use the above information
to determine cash flows from investing activities. (Amounts to be
deducted should be indicated with a minus sign.)
2.
Net income was $467,000....
1.What Journal entry should be made if book inventory is $101,000 and market value is 97,000...
1.What Journal entry should be made if book inventory is
$101,000 and market value is 97,000
Debit Inventory 4,000, Credit Cost of Goods sold 4,000
Debit Loss on Inventory Devaluation 4,000, Credit Inventory
4,000
Debit Cost of Goods sold 4,000, Credit Inventory 4,000
No entry is needed as inventory is recorded at cost
2.Which statement is false
When Prices are rising LIFO Cost of Goods Sold will be higher
than FIFO
When Prices are rising Net Income will be Lower...
- Fixed assets costing $8,000 with a book value of $3,000 were sold for $6,000. -...
- Fixed assets costing $8,000 with a book value of $3,000 were
sold for $6,000.
- Long term investments costing $5,000 were sold for $5,000.
-Redeemed $5,000 of the bond issuance.
- Sold stock___________.
-Paid dividends_________.
All other transactions involved cash.
Be certain you have accounted for all the changes in the account
line items somewhere in your 3 areas of SCF (ex. Fixed Assets
account went from $28K to $40k - we did not just buy $12K this
year....)...
Question text Computing Depreciation Expense. Equipment costing $580,000, with an expected scrap value of $60,000 and...
Question text
Computing
Depreciation Expense.
Equipment costing $580,000, with an expected scrap value of $60,000
and an estimated useful life of 5 years, was purchased on January
1, 2012.
Calculate the
depreciation expense for years 2012 to 2016 using: (a) the
straight-line method and (b) the double-declining-balance
method.
Round to the nearest
whole number.
2012
2013
2014
2015
2016
Straight-line
depreciation
$Answer
$Answer
$Answer
$Answer
$Answer
Double-declining balance
(a) without
straight-line switch-over
$Answer
$Answer
$Answer
$Answer
$Answer
(b) with
straight-line...
During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (original...
During the year,
Murray Company sold equipment with a book value of $125,000 for
$175,000 (original purchase cost of $225,000). New equipment was
purchased.
Murray provided the
following comparative balance sheets:
Murray Company
Comparative Balance Sheets
At December 31, 20X1 and 20X2
20X1
20X2
Long-Term Assets
Plant and equipment
$1,000,000
$1,025,000
Accumulated depreciation
(500,000)
(525,000)
Land
500,000
741,750
Required:
Calculate the
investing cash flows for the current year. Use a minus sign to
indicate a cash outflow.
$
When merchandise previously sold to a customer is returned, the journal entry is ...
When merchandise previously sold to a customer is returned, the
journal entry is ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You are tasked with assessing the health department’s intervention program in preventing recurrence of acute alcohol...
- Compare the MOSFET, JFET , and BJT and identify the reasons these devices behave differently. What...
- How would you use SAS Enterprise Miner to create a neural network model of your example?
- Explain the use of neural networking modeling in predictive analytics.
- Current Market Mix of Netflix, as detail as possible, please.
- This is all one question, thank you so much in advance! You must evaluate a proposal...
- X Company is considering the purchase of a new processor that costs $200,000. Shipping and setup...
ADVERTISEMENT