Ceda Co. has equipment that cost $76,400 and that has been depreciated $50,200.

Question

Ceda Co. has equipment that cost $76,400 and that has been depreciated $50,200.

Record the disposal under the following assumptions.

(a) It was scrapped as having no value.

(b) It was sold for $23,300.

(c) It was sold for $37,800.

(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.)

No. Account Titles and Explanation Debit Credit

(a) Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Equipment

(b) Loss on Disposal of Plant Assets Accumulated Depreciation-Equipment Cash Equipment

(c) Cash Accumulated Depreciation-Equipment Equipment

Explanation / Answer

Date Account Debit credit a Accumulated depreciation -equipment 50200 loss on disposal of plant asset 26200 Equipment 76400 b cash 23300 Accumulated depreciation -equipment 50200 loss on sale of plant asset 2900 equipment 76400 c cash 37800 Accumulated depreciation -equipment 50200 Gain on sale of plant asset 11600 equipment 76400

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