Smiley Corporation sold equipment costing $72,000 with $66,000 of accumulated depreciation for $10,000 cash. Which of the following journal entries should be prepared?

Question

Quizplus · Accepted Answer

The correct entry involves debiting Cash for the amount received ($10,000), debiting Accumulated Depreciation for the amount accumulated ($66,000), crediting Equipment for its original cost ($72,000), and crediting Gain on Sale of Equipment for the difference ($4,000).

Smiley Corporation Sold Equipment Costing $72,000 with $66,000 of Accumulated