On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $208,831.0

Question

3 years ago

6

On December 31, Strike Company has decided to discard one of its batting cages. The initial cost of the equipment was $208,831.0

0 with an accumulated depreciation of $187,947.90. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal. Select the correct answer. Accumulated Depreciation Dr. $208,831.00 Equipment Cr. $208,831.00 Gain on Disposal of Asset Cr. $20,883.10 Loss on Disposal of Asset Dr. $187,947.90

Business

1 answer:

borishaifa [10] · Answer 1 · 2022-04-27T21:17:45+03:00

Answer: Equipment Cr. $208,831.00

Explanation:

The Asset was purchased at a cost of $208,831.00 and this was reflected in the Equipment account.

When disposing of the Equipment therefore, the Equipment account has to be credited by a total amount corresponding to the same amount which is $208,831.00 to ensure that the asset will be removed from the Equipment account as it is no longer in the company.