Gaston owns equipment that cost $90,500 with accumulated depreciation of $61,000.Gaston asks $30,000 for the equipment but sells the equipment for $26,000.Which of the following would not be part of the journal entry to record the disposal of the equipment?
A)Debit Accumulated Depreciation $61,000.
B)Credit Equipment $90,500.
C)Debit Loss on Disposal of Equipment $3,500.
D)Credit Gain on Disposal of Equipment $3,500.
E)Debit Cash $26,000.

Question

Quizplus · Accepted Answer

Since the equipment was sold for less than its book value, a loss on disposal of equipment should be recorded. However, there is no gain on disposal of equipment. Therefore, option D is not part of the journal entry.

Gaston Owns Equipment That Cost $90,500 with Accumulated Depreciation of $61,000.Gaston