Question

Exercise 9-7

Blossom Company has delivery equipment that cost $47,000 and has been depreciated $23,000.

Record entries for the disposal under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a) It was scrapped as having no value.
(b) It was sold for $36,000.
(c) It was sold for $18,000.

No.
Account Titles and Explanation
Debit
Credit
(a)
enter an account title to record the disposal of the equipment as if it was scrapped as having no value
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was scrapped as having no value
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was scrapped as having no value
Enter a debit amount
Enter a credit amount
(b)
enter an account title to record the disposal of the equipment as if it was sold for $36,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $36,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $36,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $36,000
Enter a debit amount
Enter a credit amount
(c)
enter an account title to record the disposal of the equipment as if it was sold for $18,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $18,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $18,000
Enter a debit amount
Enter a credit amount
enter an account title to record the disposal of the equipment as if it was sold for $18,000
Enter a debit amount

Answer 1

Answer	Eqipment Cost	$        47,000
	Accumulated Depreciation	$        23,000
	Wriiten Down Value	$        24,000
	(47000-23000)
1)	Scrapped as having no value
Journal Entries
		Debit	Credit
	Accumulated Depreciation	23000
	Loss on Sale of Equipment	24000
	To Equipment		47000
	(for equipment scarpped for Nil Value)
2)	It was sold for $36000
		Debit	Credit
	Accumulated Depreciation	23000
	Bank	36000
	To Equipment		47000
	To Gain on sale of euipment		12000
	(for equipment scarpped for $36000)
3)	It was sold for $18000
		Debit	Credit
	Accumulated Depreciation	23000
	Loss on Sale of Euipment	6000
	Bank	18000
	To Equipment		47000
	(for equipment scarpped for $18000)