(b) Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul in 2017 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000. Indicate the accounts increased/decreased to record the disposition of the equipment. (c) Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment. Indicate the accounts increased/decreased to record the disposition of the equipment.
(b) Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul in 2017 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000. Indicate the accounts increased/decreased to record the disposition of the equipment. (c) Selby Company sold equipment that had a book value of $13,500 for $15,000. The equipment originally cost $45,000 and it is estimated that it would cost $57,000 to replace the equipment. Indicate the accounts increased/decreased to record the disposition of the equipment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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b and c
Transcribed Image Text:(b) Lewis Company sold equipment for $11,000. The equipment
originally cost $25,000 in 2014 and $6,000 was spent on a major
overhaul in 2017 (charged to the Equipment account).
Accumulated Depreciation on the equipment to the date of
disposal was $20,000.
Indicate the accounts increased/decreased to record the
disposition of the equipment.
(c) Selby Company sold equipment that had a book value of
$13,500 for $15,000. The equipment originally cost $45,000 and it
is estimated that it would cost $57,000 to replace the equipment.
Indicate the accounts increased/decreased to record the
disposition of the equipment.
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