- terases Blossom Company has delivery equipment that cost s57,000 and has been

Question

- terases Blossom Company has delivery equipment that cost s57,000 and has been depreciated $23,600. 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 o for the amounts.) (a) It was scrapped as having no value. b) It was sold for $37,300. c) It was sold for $18,300 No. Account Titles and Explanation Debit Credit

Explanation / Answer

a) Net book value = $57000 - 23600

= $ 33400
Journal entry would be -

Accumulated depreciation   A/c   Dr.    $ 23600

Disposal of equipment A/c    Dr.          $33400

    To Equipment A/c                                            $57000

(Equipment dosposed.)

2.

It was sold for $37300

Journal entry -

Acc Dep. A/c Dr.                        23600

Cash A/c        Dr.                        37300

    To Equipment                                      57000

     To Disposal of quipment                     3900

(Profit on sale of equipment)

3 .

Journal entry -

Acc Dep. A/c Dr.                        23600

Cash A/c        Dr.                        18300

   To Equipment                                      57000

Disposal of quipment A/c Dr.      15100

(Equipment sold at loss)

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