Answer:
CRUZ, INC
General Ledger Accounts for the Sale of Furniture:
Sale of Furniture
Date Description Debit Credit Balance
Dec. 31, 2019 Furniture Account $49,100 $49,100
Dec. 31, 2019 Cash Account $64,900 $15,800
Dec. 31, 2019 Gain on Sale $15,800 $0
Cash Account
Date Description Debit Credit Balance
Dec. 31, 2019 Balance b/d $85,600 $85,600
Dec. 31, 2019 Sale of Furniture $64,900 $150,500
Explanation:
Since the Furniture was sold at its book value of $64,900, the cash receipt equals this amount. This is compared with the Furniture's book value of $49,100 to obtain a Gain on Sale of Furniture of $15,800.
