Question

Texts: Skysong Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,500. The balance in Accumulated Depreciation at January 1 is $40,000. What entry would Skysong make to record the sale of the equipment? Account Titles and Explanation Debit Credit Cash $10,000 Accumulated Depreciation $40,000 Equipment Cost $48,500 Gain on Sale of Equipment ?

Name: texts skysong enterprises sold equipment on january 1 2020 for 10000 the equipment had cost 48500 the balance in accumulated depreciation at january 1 is 40000 what entry would skysong make 89714
Uploaded: 2023-06-29T05:02:00-08:00
Duration: 1 min 35 s
Channel: Supreeta N
Description: texts skysong enterprises sold equipment on january 1 2020 for 10000 the equipment had cost 48500 the balance in accumulated depreciation at january 1 is 40000 what entry would skysong make 89714

          Texts: Skysong Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,500. The balance in Accumulated Depreciation at January 1 is $40,000. What entry would Skysong make to record the sale of the equipment? 

Account Titles and Explanation        Debit                 Credit  
Cash                                          $10,000
Accumulated Depreciation          $40,000
Equipment Cost                           $48,500
Gain on Sale of Equipment                      ?

Added by Linda N.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Supreeta N

06/29/2023

Step 1

The gain on the sale of equipment is the selling price minus the equipment cost. Gain on Sale of Equipment = Selling Price - Equipment Cost = $10,000 - $48,500 = -$38,500 (negative because it is a loss) Show more…

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Texts: Skysong Enterprises sold equipment on January 1, 2020 for $10,000. The equipment had cost $48,500. The balance in Accumulated Depreciation at January 1 is $40,000. What entry would Skysong make to record the sale of the equipment? Account Titles and Explanation Debit Credit Cash $10,000 Accumulated Depreciation $40,000 Equipment Cost $48,500 Gain on Sale of Equipment ?