ACC 101-A01N (Backman) Summer 2018 Jackson Ward & 1 7/3/18 9:56 AM Homework: Cha

ID: 2396998 • Letter: A

Question

ACC 101-A01N (Backman) Summer 2018 Jackson Ward & 1 7/3/18 9:56 AM Homework: Chapter 10 Homework Score: 0 of 1 pt S10-9 (similar to) Save Hw Score: 0%, 0 of 3 pts Question Help * Mil?eek Ob preasedeqprot on Jan ary 1, 2018,for$28A33. Suppose Mil Oeek0ofaub sold the equipment for$21,000 on December 31, 2019. Acoumulated Depreciation as of December 31, 2019, was $8.810 Joumalize the sale of the equipment, assuming straight-ine depreciaion was used First, caloulate any gain or loss on the disposal of the equipment Market value of assets received Less: Book value of asset disposed of Cost Gain or lLom) Enter any number in the edit fields and then dlick Check Answer Clear All Check Answer 3 8 9.

Explanation / Answer

Journal entry for the sale of equipment:

Cash a/c

Accumulated depreciation a/c

To Equipment a/c

To Profit or Loss a/c

(Being the equipment sold for profit)

21,000

8,810

28,633

1,777

Assumption- Equipment has been sold for cash and cash has received.

Calculation of gain/loss on disposal of equipment:

Market value of asset received as on 31/12/2019 = $21,000

Less: Book value of asset disposed of

Cost as on 01/01/2018 = $28,633

Accumulated depreciation = $8,813 $19,823

GAIN $1,177

Hope this this useful and thank you!!!!!!

Date Journal Entry Debit (In $) Credit ($) 31/12/2019