Question

(a) Blossom Company retires its delivery equipment, which cost $45,890. Accumulated depreciation is also $45,890 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,400 instead of 45,890.

Answer 1

Answer: The answer has been attached

Step-by-step explanation:

Here is the complete question:

Prepare journal entries to record these transactions:

(a) Blossom Company retires its delivery equipment, which cost $45,890. Accumulated depreciation is also $45,890 on this delivery equipment. No salvage value is received. (b) Assume the same information as in part (a), except that accumulated depreciation for the equipment is $37,400 instead of 45,890

The journal entries has been prepared and attached. It should be noted that the loss on the sale of the equipment was calculated as:

= $45,890 - $37,400

= $8,490

Check the attachment for the journal entries.