Need help with the following journal entry.... Office equipment costing 10,000 w

Question

Need help with the following journal entry....

Office equipment costing 10,000 was sold for cash in the amount of $15,000. Remember, you need to remove the accumulated depreciation for that equipment. Company uses straight line depreciation method, with a five year life and no salvage balance. Unadjusted trial balance shows a credit of $250 for accumulated depreciation, office expense.

I know the journal entry will look like this, I am just having trouble with some of the figures. Any help would be appreciated! Posted the trial balance, journal entry for February 1 is the one I am in need of help on.

Cash                                          $15,000 (DR)

Accumulated Depreciation $ _______ (DR)

                                                 Office Equipment                        $10,000 (CR)

                                                Gain or Loss on sale of asset     $_______ (CR)

Explanation / Answer

Journal Entry

Account Title & Explaination Debit Credit Cash 15000 Accumulated Depreciation 250 Office Equipment 10000 Gain or Loss on sale of asset 5250

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