Question

Remini company sells equipment for $ 20,000 cash. the equipment has a historical cost of $ 86 comma 000 and accumulated depreciation of $ 56 comma 000. what is the journal entry to record the sale of the​ equipment?

Answer 1

Journal Entry for the above transaction will be as follows:

Cash....................................................DR 20000

Accumulated Depreciation..........DR 56000

Loss onSale of Asset.....................DR 10000

To Equipment 86000