Recording the Sale of PPE Assets

As part of a renovation of its showroom, O'Keefe Auto Dealership sold furniture and fixtures that were eight years old for $$7,000$ in cash. The assets had been purchased for $$80,000$ and had been depreciated using the straight$-$line method with no residual value and a useful life of ten years.

a$.$ Prepare a journal entry to record this transaction.

General Journal

Description Debit Credit

Cash Answer

$0$

Answer

$0$

Accumulated depreciation Answer

$0$

Answer

$0$

Answer

Answer

$0$

Answer

$0$

Answer

Answer

$0$

Answer

$0$

b$.$ Show how the sale of the furniture and fixtures affects the balance sheet and income statement.

Remember to use negative signs with answers, when appropriate.

Transaction Cash Asset $+$ Noncash Assets $-$ Contra Assets $=$ Liabilities $+$ Contr. Capital $+$ Earned Capital Revenue $-$ Expenses $=$ Net income

Sold furniture and fixtures. Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Answer

$0$

Please answer all parts of the question.