Lewis Company sold equipment for $11,000. The equipment originally cost $25,000

Question

Lewis Company sold equipment for $11,000. The equipment originally cost $25,000 in 2014 and $6,000 was spent on a major overhaul in 2017 (charged to the Equipment account). Accumulated Depreciation on the equipment to the date of disposal was $20,000.

Prepare the appropriate journal entry to record the disposition of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

enter an account title to record the disposition of the equipment

enter a debit amount

enter a credit amount

enter an account title to record the disposition of the equipment

enter a debit amount

enter a credit amount

enter an account title to record the disposition of the equipment

enter a debit amount

enter a credit amount

Explanation / Answer

Equipment is sold for $11,000. so no gain or loss

Journal entries

Original cost of equipment $   25,000 Add: Additional cost $      6,000 Total cost of equipment $   31,000 Less: Accumulated depreciation $ (20,000) Book value of equipment $   11,000

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.