Disposal of an Operating Asset

Jolie Company owns equipment with a cost of $302,500 and accumulated depreciation of $166,375.

Required:

Prepare the journal entry to record the disposal of the equipment on April 9 assuming:

1. Jolie sold the equipment for $152,500 cash. If an amount box does not require an entry, leave it blank.

Apr. 9

Accumulated Depreciation

Cash

Gain on Disposal of Property, Plant,

Equipment

2. Jolie sold the equipment for $126,600 cash. If an amount box does not require an entry, leave it blank.

Apr. 9

Accumulated Depreciation

Cash

Loss on Disposal of Property, Plant, and Equipment

Equipment