Prepare journal entries to record these transactions: (a) Rangel Company retires

Question

Prepare journal entries to record these transactions:

(a) Rangel Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received. (b) Rangel Company retires its delivery equipment, which cost $41,000. Accumulated depreciation for the equipment is $37,200 on this delivery equipment. No salvage value is received.

PLEASE FORMAT YOUR ANSWER USING THE EXAMPLE PHOTO BELOW

Brief Exercise 9-7 Prepare journal entries to record these transactions: (a) Rangel Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage value is received. (b) Rangel Company retires its delivery equipment, which cost $41,000. Accumulated depreciation for the equipment is $37,200 on this delivery equipment. No salvage value is received. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit

Explanation / Answer

Journal Entry Particulars Dr Amt Cr Amt a) Accumulated Depreciation Dr                   41,000.00 To Equipment           41,000.00 b) Loss on Sale of Equipment Dr = 41,000 -37,200                      3,800.00 Accumulated Depreciation Dr                   37,200.00 To Equipment           41,000.00

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