Cambria owns equipment that cost $93,500 with accumulated depreciation of $64,000.Cambria asks $35,000 for the equipment but sells the equipment for $33,000.The journal entry to record the disposal of the asset would involve all of the following except:

Question

Quizplus · Accepted Answer

Gain/Loss on Sale = Cash Received - Book Value
Gain/Loss on Sale = $33,000 - ($93,500 - $64,000); Gain of $3,500
Debit Cash for $33,000 received; Credit Equipment for $93,500 to remove the asset; Debit Accumulated Depreciation for $64,000 to remove the contra-asset; Credit Gain on Sale for $3,500

Cambria Owns Equipment That Cost $93,500 with Accumulated Depreciation of $64,000.Cambria