Sale of Plant Asset Raine Company has a machine that originally cost $75,000. De

Question

Sale of Plant Asset Raine Company has a machine that originally cost $75,000. Depreclation has been recorded for five y straight-line method, with a $12,000 estimated salvage value at the end of an expected nine-year life. recording depreciation at the end of five years, Raine sells the machine. Prepare the journal entry to r machine's sale for (Round to the nearest dollar): a. $50,000 cash b. $40,000 cash c, $35,000 cash General Journal Date Description Debit Credit a. Cash 50,000 Accumulated Depreciation- Equipment 12,000 Equipment 75,000 Gain on Sale of Plant Assets 38,000 To record sale of machine. b. Cash 40,000 To record sale of machine. c Cash 35,000 20 D11 F8 F4 F5 F7 F9

Explanation / Answer

a) Journal entry - Sale of machinery

b) Journal entry - Sale of machinery

c) Journal entry - Sale of machinery

Date accounts & explanation debit credit Cash 50000 Accumlated depreciation (75000-12000/9)*5 35000 Gain on sale of machine 10000 Machine 75000 (To record sale of machine)

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