Question

Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul in 2017
Prepare the appropriate journal entry to record the disposition of the equipment.

Answer 1

Answer:

Dr Cash 11,000

Dr Accumulated Depreciation-Equipment 20,000

Equipment 31,000

Explanation:

Preparation of the Journal entry to record the disposition of the equipment

Since we were told that Lewis Company sold

the equipment for the amount of $11,000 in which the Accumulated Depreciation on the equipment to the date of disposal was the amount of $20,000 this means the journal entry to record the disposition of the equipment will be :

Dr Cash 11,000

Dr Accumulated Depreciation-Equipment 20,000

Equipment 31,000

(20,000+11,000)