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 $3,500 in cash. The assets had been purchased for $40,000 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 Accumulated depreciation b. Show how the sale of the furniture and fixtures affects the balance sheet and income statement. Note: Use negative signs with answers, when appropriate. Income Statement Noncash Transaction Cash Asset + Asset Sold machinery for cash $ 3,500 + $ Balance Sheet Contra Assets Liabilities Contrib. Capital + $ + Earned Capital + $ + Revenues = Net Income Expenses $ $ = $ $ = $ N