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FoodShopper Company later sold the equipment for $7,000 on December 31, 2020.
Accumulated Depreciation was $20,000 on December 31, 2020.
Journalize the sale of the equipment, assuming straight-line depreciation was used.
Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss)
Date Description Debit Credit December 31 December 31 December 31 December 31 Market value of assets received 7,000 Less: Book value of asset disposed of Cost 31,000 Less: Accumulated Depreciation 20,000 11,000 Gain or (Loss) -4,000 Date Description Debit Credit December 31 Cash 7,000 December 31 Accum. Depr.-Equipment 20,000 December 31 Loss on Sale 4,000 December 31 Equipment 31,000