contestada

Carla Vista Co. has delivery equipment that cost $49,600 and has been depreciated $24,600.

Prepare a tabular summary to record the disposal under the following assumptions.
It was sold for $37,900

was sold for 19100

Respuesta :

a)

Gain on disposal=$12,900

b)

Loss on disposal=$5,900

Prepare a tabular summary to show the cost of equipment disposed of, the accumulated depreciation, and gain or loss recorded on disposal?

Note that initially when the equipment was purchased, it would be debited to an asset account, whereas, it would be credited upon disposal since the company no longer owns it.

The accumulated depreciation was originally a credit entry in the balance sheet and needs to be debited now that the equipment has been sold.

Note that the excess of the sum of the accumulated depreciation and the cash received over the initial cost of the equipment is a gain and the reverse means a loss was recorded on disposal.

Account                                DR                  CR

Asset                     $49,600

Gain on disposal      $12,900

Accumulated depreciation                               $24,600  

Cash received                                              $37,900  

gain on disposal=$24,600+$37,900-$49,600

gain on disposal=$12,900

Account                                 DR                    CR

Asset                                                           $49,600

Accumulated depreciation   $24,600  

Cash received                         $19,100  

Loss on disposal                     $5,900  

Loss on disposal=$49,600-$24600-$19,100

Loss on disposal=$5,900

Learn more about asset disposal in the link provided below:

https://brainly.com/question/14542603

#SPJ1

Otras preguntas