Question

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold...

As part of a major renovation at the beginning of the year, Atiase Pharmaceuticals, Inc. sold shelving units (recorded as Equipment) that were 10 years old for $890 cash. The shelves originally cost $6,760 and had been depreciated on a straight-line basis over an estimated useful life of 10 years with an estimated residual value of $460.

Complete the table below, indicating the account, amount, and direction of the effect on disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.)

Assests = Liabilities + Stockholder's Equity

2. Prepare the journal entry to record the sale of the shelving units.

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Answer #1

Complete the table below, indicating the account, amount, and direction of the effect on disposal. Assume that depreciation has been recorded to the date of sale. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign. Do not round intermediate calculations.)

Assets = Liabilities + Stockholder's Equity
Equipment -6760 Gain on sale of equipment 430
Accumulated depreciation-Equipment -6300
Cash 890

2) Journal entry

Date account and explanation debit Credit
Cash 890
Accumulated depreciation-equipment 6300
Gain on sale of equipment 430
Equipment 6760
(To record sale of equipment)
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