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Running head: ACCOUNTING

1

Accounting

Name

Institution

ACCOUNTING

2

Exercise 7-7
Crane Company has delivered equipment that costs $49,000 and has been depreciated $23,300.
Prepare a tabular summary to record the disposal under the following assumptions
a) It was scrapped as having no value
Book value = cost – depreciation
Book value = 49,000 – 23,300 = 25,700
Depreciation Debited $ 23,300
Loss on disposal of equipment debited $ 25,700
Equipment credited $ 49,000
Assets

Liabilities

Equipment

-

49,000

Depreciation

23,300

Expense
25,700

Equipment is recorded as negative
b) It was sold for 36,900
Depreciation Debited $ 23,300
Cash debited $36,900
gain on disposal of equipment credited $ 11,200
Equipment credited $ 49,000
Assets

Liabilities

Cash

Equipment

-dep

Revenue

36,900

49000

23,300

11,200

Equipment is recorded as negative
c) It was sold for 19,600
Depreciation Debited $ 23,300
Cash debited $19,600
loss on disposal of equipment debited $ 6,100
Equipment credited $ 49,000

ACCOUNTING
...


Anonymous
I was struggling with this subject, and this helped me a ton!

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