Question

Gaston owns equipment that cost $17,000 with accumulated depreciation of $6,800. Gaston asks $14,200 for the equipment but sells the equipment for $9,200. Which of the following would not be part of the journal entry to record the disposal of the equipment?

a. Debit Accumulated Depreciation $61,000.
b. Credit Equipment $90,500. Debit Loss on Disposal of Equipment $3,500.
c. Credit Gain on Disposal of Equipment $3,500.
d. Debit Cash $6,000.

Answer 1

Answer:

Credit Gain on Disposal of Equipment $1,000.

Explanation:

Based on the information given the entry that will NOT be part of the Journal entry to record the disposal of the equipment is Credit Gain on Disposal of Equipment $1,000 reason been that the company had a LOSS on Disposal of Equipment of the amount of $1,000($9,200+$6,800)-$17,000) which will be debited.

Dr Cash $9,200

Dr Accumulated Depreciation $6,800

Dr Loss on Disposal of Equipment $1,000

[($9,200+$6,800)-$17,000)

Cr Equipment $17,000