Question

Gaston owns equipment that cost $90,500 with accumulated depreciation of $61,000. Gaston sells the equipment for $26,000. Which of the following would not be part of the journal entry to record the disposal of the equipment?

Answer 1

The journal entry to dispose/sale of equipment would be as follows:

General Journal	Debit	Credit
Cash (Sales Proceeds of Equipment)	$26,000
Accumulated Depreciation - Equipment	$61,000
Loss on Disposal of Equipment (Balancing figure)	$3,500
Equipment		$90,500
(to record disposal of equipment)

The above are the debit and credit accounts.

Credit Gain on Disposal of Equipment $3,500 would not be part of the journal entry.

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