Question

Brief Exercise 7-35 (Algorithmic) Disposal of an Operating Asset Jolie Company owns equipment with a cost...

Brief Exercise 7-35 (Algorithmic) Disposal of an Operating Asset Jolie Company owns equipment with a cost of $330,000 and accumulated depreciation of $141,900. Required: Prepare the journal entry to record the disposal of the equipment on April 9 assuming:

1. Jolie sold the equipment for $195,600 cash. If an amount box does not require an entry, leave it blank.

April 9

2. Jolie sold the equipment for $174,900 cash. If an amount box does not require an entry, leave it blank.

April 9

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Answer #1
  • Requirements asked

Date

Accounts title

Debit

Credit

09-Apr

Cash

$195,600

Accumulated Depreciation - Equipment

$141,900

   Gain on sale/disposable

$7,500

   Equipment

$330,000

(to record sale)

09-Apr

Cash

$174,900

Accumulated Depreciation - Equipment

$141,900

Loss on sale/disposal

$13,200

   Equipment

$330,000

(to record sale)

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