Answer and Explanation:
The journal entries are as follows
1. For sale of equipment at $50,300
Cash Dr $50,300
Accumulated depreciation $43,000
To Equipment $81,200
To Gain on sale of equipment $12,100
(Being the sale of equipment is recorded)
Since the equipment is sold for $50,300 which increased the assets so cash account is debited along with it the accumulated depreciation is debited and the cost of equipment is credited plus the balancing figure is transferred to gain on sale of equipment because the sale value is more than the book value
2. For sale of equipment at $38,200
Cash Dr $38,200
Accumulated depreciation $43,000
To Equipment $81,200
(Being the sale of equipment is recorded)
Since the equipment is sold for $38,200 which increased the assets so cash account is debited along with it the accumulated depreciation is debited and the cost of equipment is credited
The book value and the sale value is equal so there is no loss or no gain recognized in this case
3. For sale of equipment at $33,100
Cash Dr $33,100
Accumulated depreciation $43,000
Loss on sale of equipment $5,100
To Equipment $81,200
(Being the sale of equipment is recorded)
Since the equipment is sold for $$33,100 which increased the assets so cash account is debited along with it the accumulated depreciation is debited and the cost of equipment is credited plus the balancing figure is transferred to loss on sale of equipment because the sale value is less than the book value
