Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800.Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $47,000 cash, (2) $36,000 cash, and (3) $31,000 cash.### Case 1:**General Journal:**| Transaction | Account | Debit | Credit ||-------------|----------------------------------------|---------|---------|| 1 | Cash | $47,000 | || | Accumulated Depreciation—Equipment | $40,800 | || | Equipment | | $76,800 || | Gain on Sale of Equipment | | | - **Explanation:** - **Cash** is debited with $47,000, reflecting the cash received from the sale. - **Accumulated Depreciation—Equipment** is debited with $40,800, reducing the book value of the asset. - **Equipment** is credited with $76,800, removing it from the accounts. - **Gain on Sale of Equipment** would be computed to balance the journal entry, but it is not specified here.

Journal entry is the primary step to record the transaction in the books of accounts. The increase…

Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $47,000 cash, (2) $36,000 cash, and (3) $31,000 cash. View transaction list View journal entry worksheet No A Transaction 1 General Journal Cash Accumulated depreciation Equipment Equipment Gain on sale of equipment Debit 47,000 40,800 Credit 76,800 X

Garcia Company owns equipment that cost $76,800, with accumulated depreciation of $40,800. Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $47,000 cash, (2) $36,000 cash, and (3) $31,000 cash. View transaction list View journal entry worksheet No A Transaction 1 General Journal Cash Accumulated depreciation Equipment Equipment Gain on sale of equipment Debit 47,000 40,800 Credit 76,800 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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