Question

If equipment is sold for $5,000 when it has a balance in PP&E of $100,000 and...

  1. If equipment is sold for $5,000 when it has a balance in PP&E of $100,000 and Accumulated Depreciation of $96,000, the journal entry for the sale should include

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Original cost of Property Plant and Equipment (PP&E) 100000
Less: Accumulated value -96000
Net Book Value of PP&E 4000
Calculation of Gain or Loss on sale of PP&E
Sales value 5000
Less: BOOK Value 4000
Net gain on sale of asset 1000
Journal entry
Account NAME Debit Credit
Cash 5000
Accumulated Depreciation 96000
     Property Plant & Equipment 100000
     Gain on sale of asset 1000
(To record sale of PPE)
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
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to...
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of $5,000 and an estimated useful life of 8 years. Straight-line depreciation is used. If the equipment is sold on July 1, Year 5 for $20,000, the journal entry to record the sale will include a: Select one: a. Debit to accumulated depreciation for $22,500. b. Credit to loss on sale for $10,000. c. Credit to cash for $20,000. d....
fill in the blank Referred to as property, plant, and equipment (PP&E); plant and equipment; and...
fill in the blank Referred to as property, plant, and equipment (PP&E); plant and equipment; and _______ ________. ___________ is the process of allocating to expense the cost of a plant asset over its useful (service) life in a rational and systematic manner to those periods expected to benefit from the use of the asset. Depreciation is an _________ . _______ _______ include land, land improvements, buildings, and equipment (machinery, furniture, tools) are resources that _______ ___ _________ - Expense...
1. A truck cost $60,000 when purchased and has a $60,000 balance in the accumulated depreciation...
1. A truck cost $60,000 when purchased and has a $60,000 balance in the accumulated depreciation account. If the truck is discarded, we will record: a. credit to accumulated depreciation, $60,000 b. debit to accumulated depreciation, $60,000 c. debit to truck, $60,000 d. loss on disposal, $60,000 2. A truck cost $60,000 when purchased and has a $50,000 balance in accumulated depreciation account. If the truck is sold for $5,000 cash, we will record: a. no entry required b. loss...
. On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and accumulated...
. On its January 1, 2016, balance sheet, Calvin Company reported equipment of $60,000 and accumulated depreciation of $20,000. During 2016, Calvin sold equipment with an original cost of $5,000. Selected information from Calvin's 2016 statement of cash flows follows: Net income                                                                    $20,000 Depreciation expense on equipment                      2,000 Gain on sale of equipment                                         600 Proceeds from sale of equipment                            1,500 Purchase of equipment                                               18,000 Required: Compute the amount of equipment and accumulated depreciation that should...
PP&E EXPENDITURES SUBSEQUENT TO ACQUISITION A. On January 1, 2018, Sanderson Electric Company purchased equipment to...
PP&E EXPENDITURES SUBSEQUENT TO ACQUISITION A. On January 1, 2018, Sanderson Electric Company purchased equipment to be used in its manufacturing process. The equipment cost $60,000, has a six year useful life, no residual value, and will be depreciated using the straight-line method. On January 1, 2019, Sanderson spent $4,000 to repair the equipment and $11,000 to add a feature, which increased the equipment’s operating efficiency and its useful life. After adding the feature, Sanderson decided that the total useful...
Carey Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,000. The...
Carey Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,000. The balance in Accumulated Depreciation at January 1 is $40,000. What entry would Carey make to record the sale of the equipment? (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost...
True/False 1.___ Almost all property, plant, and equipment (PP&E) is depreciated, which means that its cost is spread over its useful life. 2. ____ PP&E is a long-term asset. 3. ____ If PP&E is found to be permanently impaired, a loss must be recorded. 4. ____ If an expenditure increases the useful life of an asset, it should be capitalized, not expensed. 5. ____ It does not matter how a company divides a basket purchase since all the assets will...
On July 1, 2015, Hale Kennels sells equipment for $220,000. The equipment originally cost $600,000, had...
On July 1, 2015, Hale Kennels sells equipment for $220,000. The equipment originally cost $600,000, had an estimated 5-year life and an expected salvage value of $100,000. The accumulated depreciation account had a balance of $350,000 on January 1, 2015, using the straight-line method. 1) Journal entry for the catch-up depreciation from Jan 1, to July 1, 2015 2) Journal entry showing the sale of the equipment on July 1, 2015
Blue Spruce Corporation owns equipment that cost $73,200 when purchased on April 1, 2013. Depreciation has...
Blue Spruce Corporation owns equipment that cost $73,200 when purchased on April 1, 2013. Depreciation has been recorded at a rate of $12,200 per year, resulting in a balance in accumulated depreciation of $57,950 at December 31, 2017. The equipment is sold on July 1, 2018, for $14,640. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
•ABC Realty Corp. purchased a truck for $100,000 on 1/1/2014. •On 6/30/16 when the accumulated depreciation...
•ABC Realty Corp. purchased a truck for $100,000 on 1/1/2014. •On 6/30/16 when the accumulated depreciation was $40,000 it was sold for $80,000. •Question: 1.Present the journal entries recorded by the company for the truck purchase in 2014. 2.What is the gain or loss on the sale? 3.Present the journal entry to record the sale and gain/loss of the truck.  
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT