Journal entry for asset disposal Extract from balance sheets at 30 June:

2023 2022

$ $

Equipment 980 000 821 000 Less: Accumulated depreciation (400 000) (320 000)

Equipment net 580 000 501 000 Additional information:

(i) Depreciation expense for the year is $120 000.

(ii) Cash proceeds for disposal of equipment during the year amounted to $120 000, resulting in a loss on sale of $20 000.

Prepare the journal entry for the disposal of equipment.