Final answer:
The query involves accounting for the sale of equipment at a loss. None of the options provided are correct. The necessary journal entry should include cash received, accumulated depreciation, the original cost of the equipment, and the loss on the sale of equipment.
Step-by-step explanation:
The question pertains to the recording of a sale of manufacturing equipment in accounting journal entries. The Delta River Company sold equipment at a loss, and the appropriate journal entries are needed to accurately reflect this transaction.
Firstly, the equipment account, originally recorded at the cost of the equipment, needs to be removed from the books. The accumulated depreciation for this equipment, which is the total depreciation taken on it up until the point of sale, must also be accounted for. The sale proceeds, the cash received from the sale, are to be recorded as well. Lastly, the gain or loss on the sale is calculated as the difference between the sale proceeds and the book value of the equipment (original cost minus the accumulated depreciation).
In this case, the correct journal entry to record this transaction includes:
- A debit to Cash for $9,000, reflecting the actual cash received.
- A debit to Accumulated Depreciation - Equipment for $32,000, to remove the equipment's depreciation from the books.
- A credit to the Equipment account for $44,000, to remove the equipment's original cost value.
- A debit to Loss on Sale of Equipment for $3,000, if we consider the equipment's book value ($44,000 - $32,000 = $12,000) being greater than the sale price ($9,000), which constitutes a loss.
Therefore, out of the options provided, none correctly describe the necessary journal entry. The correct entry reflects the removal of the equipment and its accumulated depreciation, records the cash received, and recognizes the loss on sale.