Answer:
(1)
cash 47,300 debit
acc dep 41,000 debit
equipment 77,200 credit
gain at disposal 11, 100 credit
(2)
cash 36,200 debit
acc dep 41,000 debit
equipment 77,200 credit
(3)
cash 31,100 debit
loss at disposal 5,100 debit
acc dep 41,000 debit
equipment 77,200 credit
Explanation:
book value: historic cost - accumulated depreciation
77,200 - 41,000 = 36,200
Now we compare the book value with the different sales values:
(1) 47,300 - 36,200 = 11,100 gain
(2) 36,200 - 36,200 = zero
(3) 31,100 - 36,200 = 5,100 loss
for the journal entry, in all cases we debit the cash collected
the depreciation and credit the asset.
the nwe will postthe gain or loss an disposal accordingly
