Maxine Company sells a tractor on January 1, 2024 for $45,000 cash. At the time of the sale, the book value of the tractor is $41,000. The original purchase price of the machine was $50,000. Which of the following would be part of the correct journal entry to record the sale of the tractor? O DEBIT to Gain on Sale of Equipment of $4,000 O CREDIT to Equipment of $41,000 O CREDIT to Gain on Sale of Equipment of $4,000 O DEBIT to Loss on Sale of Equipment of $5,000 O None of the above
Maxine Company sells a tractor on January 1, 2024 for $45,000 cash. At the time of the sale, the book value of the tractor is $41,000. The original purchase price of the machine was $50,000. Which of the following would be part of the correct journal entry to record the sale of the tractor? O DEBIT to Gain on Sale of Equipment of $4,000 O CREDIT to Equipment of $41,000 O CREDIT to Gain on Sale of Equipment of $4,000 O DEBIT to Loss on Sale of Equipment of $5,000 O None of the above
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 14PB: Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia...
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning