Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000

Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.6E
icon
Related questions
Question
Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of
depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025?
OA. Equipment
37,000
Accumulated Depreciation Equipment
13,600
Gain on Disposal
8,600
Cash
42,000
OB. Cash
42,000
Accumulated Depreciation Equipment
14,800
Gain on Disposal
19,800
Equipment
37,000
O C. Cash
42,000
Accumulated Depreciation Equipment
3,000
Gain on Disposal
Equipment
8,000
37,000
OD. Equipment
42,000
Accumulated Depreciation
Equipment
10,200
Gain on Disposal
15,200
Cash
37,000
Transcribed Image Text:Equipment was purchased for $37,000 on January 1, 2024. The equipment's estimated useful life was five years, and its residual value was $3,000. The double-declining - balance method of depreciation was used. What is the journal entry to record the sale of the equipment for $42,000 on January 3, 2025? OA. Equipment 37,000 Accumulated Depreciation Equipment 13,600 Gain on Disposal 8,600 Cash 42,000 OB. Cash 42,000 Accumulated Depreciation Equipment 14,800 Gain on Disposal 19,800 Equipment 37,000 O C. Cash 42,000 Accumulated Depreciation Equipment 3,000 Gain on Disposal Equipment 8,000 37,000 OD. Equipment 42,000 Accumulated Depreciation Equipment 10,200 Gain on Disposal 15,200 Cash 37,000
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
Accounting
ISBN:
9780357391266
Author:
Nellen
Publisher:
Cengage
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning