Remini Company sells equipment for$ 20 comma 000$20,000 cash. The equipment has
ID: 2525966 • Letter: R
Question
Remini Company sells equipment for$ 20 comma 000$20,000
cash. The equipment has a historical cost of$ 89 000and accumulated depreciation of
$51,000.What is the journal entry to record the sale of the equipment?
A.debit Loss on Sale of Equipment for$18,000 ,debit Cash for$20,000 ,
debit Accumulated Depreciation-Equipment for$51,000and credit Equipment for$89,000.
B.
debit Cash for$20,000and credit Gain on Sale of Equipment for$20,000.
C.
debit Cash for$20,000 ,debit Accumulated Depreciation-Equipment for$51,000 ,debit Gain on Sale of Equipment$18,000
and credit Equipment for$89,000.
D.
debit Cash for$20,000 ,debit Accumulated Depreciation-Equipment for$51,000and credit Equipment for$71,000.
Explanation / Answer
Loss on Sale of Equipment 18000 Cash 20000 Accumulated Depreciation-Equipment 51000 Equipment 89000 Option A is correct