On 1 January 2015 the equipment was sold for $15 000. The accounting entry to record the closing of the equipment and the accumulated depreciation of equipment accounts is which of the following?

Question

Quizplus · Accepted Answer

To close the equipment account and accumulated depreciation account, we need to debit the carrying amount of equipment and accumulated depreciation equipment and credit equipment account.

Carrying amount of equipment = cost of equipment – accumulated depreciation equipment
= $80 000 - $63 000
= $17 000

Therefore, the accounting entry to record the closing of the equipment and accumulated depreciation of equipment accounts should be:
Debit accumulated depreciation equipment $63 000; debit carrying amount of equipment $17 000; credit equipment $80 000.

Option A is incorrect because it only records the accumulated depreciation of equipment and does not account for the carrying amount of equipment account.

Option C is incorrect because it only records the sale of the equipment and does not account for the accumulated depreciation of equipment.

Option D is incorrect because it only records the accumulated depreciation of equipment and does not account for the carrying amount of equipment account.

On 1 January 2015 the Equipment Was Sold for $15