Ch9 Assignment Question 4 of s The following information app

Ch9 Assignment Question 4 (of s [The following information applies to the questions displayed below] ecorded an Equipment that were 10 years ald for $920 cash. The sheves oniginally cost $ 880 and had 2.00 points 2 Prepare the journal entry to record the sale of the shelving units. (If no entry is required for a transaction/event select \"No Journal Entry Required\" in the first account field. Do not round intermediate calculations.) Journal entry worksheet Record the sale of the shelving units for $920. ote: Enter debits before credits General Journal Difficulhy 1 Easy ved tangible assets Check my work

Solution

Journal Entry to record the sale of Shelving Units

Account Titles and Explanation

Debit ($)

Credit ($)

Cash A/c

920

Accumulated Depreciation - Equipment

6,400

To Equipments A/c

6,880

To Gain on sale of Equipment A/c

440

[ Entry to record the sale of shelving units ]

Cost of the Equipment = $6,880

Accumulated Depreciation on Equipment [(6,880 – 480) / 10] x 10 Years = 6,400

Book Value at the end of 10^th Year = $6,880 – 6,400 = 480

Sale Proceeds of the Equipment = $920

Therefore, Gain on sale of Equipment = $920 – 480 = $440

Account Titles and Explanation	Debit ($)	Credit ($)
Cash A/c	920
Accumulated Depreciation - Equipment	6,400
To Equipments A/c		6,880
To Gain on sale of Equipment A/c		440
[ Entry to record the sale of shelving units ]