# Garcia Co. owns equipment that costs \$76,800, with accumulated depreciation of \$40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: A. \$47,000 cash B. \$36,000 cash C. \$31,000 cash

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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Section
FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 11, Problem 12PA
Textbook Problem
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## Garcia Co. owns equipment that costs \$76,800, with accumulated depreciation of \$40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts:A. \$47,000 cashB. \$36,000 cashC. \$31,000 cash

To determine

(a)

Introduction:

Journal entries record business transactions. These transactions have double effect on accounts such that total of all assets equate with liabilities and equities.

To journalize:

The given transactions.

### Explanation of Solution

Record the journal entries:

 Date Account Debit (\$) Credit (\$) Cash 47,000 Accumulated depreciation 40,800 Equipment 76,800 Gain on sale of equipment 11,0001 (To record the sale of the equipment)

Table (1)

• Cash is an asset and it is increased by \$47,000. Therefore, cash is debited with \$47,000.
• Accumulated depreciation is an expense and it is decreased by \$40,800. Therefore, Accumulated depreciation is debited with \$40,800...
To determine

(b)

To journalize:

The given transactions.

To determine

(c)

To journalize:

The given transactions.

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