Disposal

Ellis Industries sells a building that has an original cost of $200,000 and an accumulated depreciation balance of $100,000.

Required:

Prepare the journal entry to record the sale assuming the sales price was (a) $100,000, (b) $95,000, and (c) $108,000.

A.) PROCEEDS FROM SALE
COST OF BUILDING
LESS: ACCUMULATED DEPRECIATION
NET BOOK VALUE AT TIME OF SALE
LOSS/GAIN ON SALE

A.) PROCEEDS FROM SALE
COST OF BUILDING
LESS: ACCUMULATED DEPRECIATION
NET BOOK VALUE AT TIME OF SALE
LOSS ON SALE

A.) PROCEEDS FROM SALE
COST OF BUILDING
LESS: ACCUMULATED DEPRECIATION
NET BOOK VALUE AT TIME OF SALE
GAIN ON SALE