Strawberry Fields purchased a tractor at a cost of $37,000 and sold it two years later for $24,700. Strawberry Fields recorded depreciation using the straight-line method, a five-year service life, and an $8,000 residual value.

1. What was the gain or loss on the sale? 2. Record the sale.

What was the gain or loss on the sale?

____ on sale _____

Record the sale.

Journal entry worksheet