Brief Exercise 7-35 (Algorithmic) Disposal of an Operating Asset Jolie Company owns equipment with a cost of $77,500 and accumulated depreciation of $46,500. Required: Prepare the journal entry to record the disposal of the equipment on April 9 assuming: 1. Jolie sold the equipment for $35,000 cash. If an amount box does not require an entry, leave it blank. Apr. 9 Accumulated Depreciation 46,500 Cash 35,000 Gain on Disposal of Property, Plant, and Equipment Equipment 2. Jolie sold the equipment for $28,800 cash. If an amount box does not require an entry, leave it blank. Apr. 9 Accumulated Depreciation Cash 1111 Loss on Disposal of Property, Plant, and Equipment Equipment