Disposal of Fixed Asset

Equipment acquired on January 6 at a cost of $375,000 has an estimated useful life of 20 years and an estimated residual value of $25,000.

c. Assuming that the equipment was sold on January 3 of Year 4 for $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentCash	Cash	Cash
	Accounts PayableAccounts ReceivableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentGain on Sale of EquipmentAccumulated Depreciation-Equipment	Accumulated Depreciation-Equipment	Accumulated Depreciation-Equipment
	Accounts PayableDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of EquipmentLoss on Sale of Equipment	Loss on Sale of Equipment	Loss on Sale of Equipment
	Accumulated Depreciation-EquipmentCashEquipmentGain on Sale of EquipmentLoss on Sale of EquipmentEquipment	Equipment	Equipment

d. Assuming that the equipment had been sold on January 3 of Year 4 for $325,000 instead of $300,000, journalize the entry to record the sale. If an amount box does not require an entry, leave it blank.

Year 4 Jan. 3	CashDepreciation Expense-EquipmentEquipmentGain on Sale of EquipmentLoss on Sale of EquipmentCash	Cash	Cash
	Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentLoss on Sale of EquipmentAccumulated Depreciation-Equipment	Accumulated Depreciation-Equipment	Accumulated Depreciation-Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentLoss on Sale of EquipmentEquipment	Equipment	Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Sale of EquipmentLoss on Sale of equipmentGain on Sale of Equipment	Gain on Sale of Equipment	Gain on Sale of Equipment