The amount of the gain or loss on disposal of the fixed asset is $2,000.
<h3>Gain or loss on disposal </h3>
First step
Book Value = Original Cost of Equipment - Accumulated Depreciation
Book Value = $30,000 -$28,500
Book value= $1,500
Second step
Gain=Sale Price -Book Value
Gain=$3,500-$1,500
Gain=$2,000
Inconclusion the amount of the gain or loss on disposal of the fixed asset is $2,000.
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Both operating expenses and cost of goods sold (COGS) are expenditures that companies incur with running their business. However, the expenses are segregated on the income statement. Operating expenses and COGS measure different ways in which resources are spent in the process of running a company.
Answer:
A. DR Petty Cash 200; CR Cash 200
Explanation:
We are asked for the entry on June 1st to stablish the petty cash fund.
The data on June 30th is irrelevant for this question.
We will only work with the information of june 1st
The ptty cash, will be an asset account. To crease an asset account we will debit it.
On credit side, we need to show how is this asset generated. In this case, with another asset, cash. Cash will be credited to show that 200 cash from the main account has been moved into the petty fund
Answer:
rework hope this helps :)
Explanation: