When a company sells machinery at a price equal to its book value,this transaction would be recorded with an entry that would include the following:
A)debit Machinery; credit Cash and Accumulated Depreciation
B)debit Cash and Machinery; credit Accumulated Depreciation
C)debit Cash and Depreciation Expense; credit Accumulated Depreciation
D)debit Cash and Accumulated Depreciation; credit Machinery

Question

Quizplus · Accepted Answer

When a company sells machinery at a price equal to its book value, the transaction is recorded by debiting Cash and Accumulated Depreciation and by crediting Machinery. This is because the machinery's book value is equal to its original cost less any accumulated depreciation, and selling it for the book value means that the company is receiving cash equal to the machinery's net book value. Therefore, the cash received is debited, and the accumulated depreciation is credited to remove that amount from the books. Finally, the machinery is also credited to remove it from the books.

When a Company Sells Machinery at a Price Equal to Its