P10-6A Record disposals

Ceda Co. has equipment that cost $80,000 and that has been depreciated $50,000.

Instructions
Record the disposal under the following assumptions.
(a) It was scrapped as having no value.
(b) It was sold for $21,000.
(c ) It was sold for $31,000.

Account Title Debit Credit

A Accumulated Depreciation-Equipment 50,000
Loss on Disposal 30,000
Equipment 80,000

B Cash 21,000
Accumulated Depreciation-Equipment 50,000
Loss on Disposal 9,000
Equipment 80,000

C Cash 31,000
Accumulated Depreciation-Equipment 50,000
Gain on Disposal 1,000
Equipment 80,000