Question

Assume that on 12/31 a forklift was sold for $10,000. At the time on sale, the...

Assume that on 12/31 a forklift was sold for $10,000. At the time on sale, the its accumulates depreciation was $9,000. The machine originally cost $16,000.

Provide the journal entry to record the sale:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • When a Fixed Asset is sold:

The cost of that asset is credited, while accumulated depreciation thereon till date is Debited.

Cash received is also debited.

Loss on sale or Gain on Sale are debited or credited respectively.

  • Journal Entry would be:

Date

Accounts title

Debit

Credit

31-Dec

Cash

$           10,000.00

Accumulated Depreciation

$             9,000.00

   Gain on Sale of Equipment

$            3,000.00

   Equipment - Forklift

$          16,000.00

(Forklift sold for cash)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mays Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company...
Mays Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company had recognized $53,000 in depreciation over the life of the machine. What is the effect of this sale on Mays Company's income statement and its statement of cash flows?
The company re-purchased 10,000 common stocks issued originally at a price of $12, with a par...
The company re-purchased 10,000 common stocks issued originally at a price of $12, with a par value of $10, at a cost of $15.00. Assume these stocks will be sold within the next 6 months Journal Entry
Preparing the [I] consolidation entries for sale of land Assume on June 15, 2013 a parent...
Preparing the [I] consolidation entries for sale of land Assume on June 15, 2013 a parent company sells land that originally cost $100,000 to its wholly-owned subsidiary for a sale price of $130,000. The subsidiary holds the land until it sells the land to an unaffiliated company on November 12, 2020. The parent uses the equity method to account for its Equity Investment. a. Prepare the required [I] consolidation entry in 2013. b. Prepare the required [I] consolidation entry required...
The Tarkin Corporation recently sold a plant asset for $12,000 that originally was purchased for $16,000....
The Tarkin Corporation recently sold a plant asset for $12,000 that originally was purchased for $16,000. At the time of the sale, the plant asset had accumulated depreciation of $3,000. This sale would result in a        [ Select ] ["Gain on Disposal of Plant Assets", "Loss on Disposal of Plant Assets*"] of                             [ Select ] ["$9,000", "$1,000*", "$12,000", "$13,000", "$16,000"] .
ABC Company sold a machine for $56,000 that originally cost $306,000. The balance of the Accumulated...
ABC Company sold a machine for $56,000 that originally cost $306,000. The balance of the Accumulated Depreciation account related to this equipment was $240,000. The entry to record the gain or loss on the disposal of this machine would include Select one: a. A credit to loss in the amount off $10,000 b. A debit to loss in the amount of 10,000 c. A debit to gain in the amount of $10,000 d. A credit to gain in the amount...
XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of...
XYZ sold an asset with a cost of $25,000 and accumulated depreciation at the time of sale of $15,000 for $11,500. Prepare the journal entry for this transaction.
Please try to analyze the following cases and write down the appropriate recoding process. a) Payne...
Please try to analyze the following cases and write down the appropriate recoding process. a) Payne Company purchased equipment in 2010 for $90,000 and estimated a $6,000 residual value at the end of the equipment's 10-year useful life. At December 31, 2016, there was $58,800 in the Accumulated Depreciation account for this equipment using the straight-line method of depreciation. On March 31, 2017, the equipment was sold for $26,000. Please prepare the appropriate journal entries to remove the equipment from...
On December 31, 2017, Cullumber Inc. has a machine with a book value of $ 1,222,000....
On December 31, 2017, Cullumber Inc. has a machine with a book value of $ 1,222,000. The original cost and related accumulated depreciation at this date are as follows. Machine $ 1,690,000 Less: Accumulated depreciation 468,000 Book value $ 1,222,000 Depreciation is computed at $ 78,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries...
On December 31, 2020, Culver Inc. has a machine with a book value of $958,800. The...
On December 31, 2020, Culver Inc. has a machine with a book value of $958,800. The original cost and related accumulated depreciation at this date are as follows. Machine $1,326,000 Less: Accumulated depreciation 367,200 Book value $958,800 Depreciation is computed at $61,200 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update...
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000;...
Assume the same facts as in Part I (Sarabeth sold goods to Izzy Corp. for $100,000; Sarabeth offers the following terms related to the sale: 5/10, n/60) however now assume Sarabeth uses the net method to account for cash discounts. Please provide the appropriate journal entries Sarabeth will record below assuming the net method is used to record cash discounts. If no entry is required, please write “N/A” below **You may round your answers to the nearest dollar! **Please Show...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT