Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Record disposals Ceda Co. has equipment that cost $80,000 and that has been depr

ID: 2566471 • Letter: R

Question

Record disposals Ceda Co. has equipment that cost $80,000 and that has been depreciated $50,000. Instructions: Calculate the gain or loss on sale and indicate which. Post the transactions to the General Journal.   Assume the following:   (a) It was sold for $21,000. (b ) It was sold for $31,000. Gain Loss Analysis: General Journal (a) Cost Date DR CR (Less: accumulated depreciation) (a) Book Value (Sales Proceed) (b) Cost (b) (Less: accumulated depreciation) Book Value (Sales Proceed) Totals Record disposals Ceda Co. has equipment that cost $80,000 and that has been depreciated $50,000. Instructions: Calculate the gain or loss on sale and indicate which. Post the transactions to the General Journal.   Assume the following:   (a) It was sold for $21,000. (b ) It was sold for $31,000.

Explanation / Answer

a.

Gain Loss Analysis :

General Journal

b.

Gain Loss Analysis :

General Journal

Cost 80,000 Accumulated depreciation (50,000) Book value 30,000 Sale proceeds (21,000) Loss on sale 9,000