Question

Furniture costing $75,900 is sold at its book value in 2019. Acquisitions of furniture total $64,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Complete the general ledger accounts to calculate cash received from the sale of furniture.

Answer 1

Hie, the question you have provided is missing information relating to Accumulated depreciation or book value of the furniture as well as profit or loss on sale of furniture.

However, important principles are explained below :

The Furniture Disposal T - Account is used to calculate the cash received from the sale of furniture.

The Format of the Account is as follows :

Debits :

Record the Costs of the Furniture Sold. In this cases Cost is $75,900

Record the Profit on Sale of Furniture (if there was profit). The information is incomplete in this case.

Credits :

Record the Accumulated Depreciation on the Furniture. This figure is missing.

Record the Loss on Sale of Furniture (if there was a loss). The information is incomplete in this case.

The Balancing figure would be the Cash Received on sale of Furniture and to be recorded here.

Conclusion :

The Cash Received on Sale of Furniture is a Balancing figure of the Furniture Disposal T - Account.