Ht ASSe Raine Company has a machine that originally cost $68,000. Depreciation h

Question

Ht ASSe Raine Company has a machine that originally cost $68,000. Depreciation has been recorded for five years using the straight-line method, with a $5,000 estimated salvage value at the end nearest dollar): a. $37,000 cash b. $33,000 cash C, $28,000 cash of an expected nine-year life. After recording depreciation at the end of five years, Raine sells the machine. Prepare the journal entry to record the machine's sale for (Round to the General Journal Date Description DebitCE Credit a. Accumulated Depreciation Equipment Gain on Sale of Plant Assets To record sale of machine. b. Cash To record sale of machine C. Cash Accumulated Depreciation - Equipment To record sale of machine

Explanation / Answer

a) Journal entry :

b) Journal entry :

c) Journal entry :

Transaction General journal Debit credit a Cash 37000 Accumlated depreciation-Equipment (68000-5000/9*5) 35000      Gain on sale of equipment 4000      Equipment 68000 (To record sale of equipment)

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