1. Radcliff Company sold equipment for $10,000 cash. The equipmentcost Radcliff $110,000 and had accumulated depreciation of $70,000at the time of the sale. How would the accounting equation changeas a result of this transaction?
- What is the journal entry to record the sale of equipment abovefor Radcliff Company?

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Sixta KovacekLv2

15 Feb 2019

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Disposal of Property, Plant, and Equipment Lynch Company sold adelivery truck on April 1, 2013. Swann had acquired the truck onJanuary 1, 2009, for $37,350. At acquisition, Lynch had estimatedthat the truck would have an estimated life of 5 years and aresidual value of $5,850. At December 31, 2012, the truck had abook value of $12,150. Lynch uses the straight-line method.

1a. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $12,175: For compound entries, ifan amount box does not require an entry, leave it blank or enter"0".

Depreciation Depreciation Expense ??

Accumulated Expense? ??

Sales Cash 12175

Accumulated Expense ?????

Truck 37350

Gain on Disposal of Truck ?????

1b. Prepare any necessary journal entries to record the sale ofthe truck, assuming it sold for $9,125: For compound entries, if anamount box does not require an entry, leave it blank or enter"0".

Depreciation Depreciation Expense???

Accumulated Depreciation???

Sale Cash 9125

Accumulated Depreciation ???????

Loss on Disposal of Property, Plan, or Equip ?????

Truck 37350

Assume that Lynch uses IFRS and sold the truck for $12,175. Inaddition, Lynch had previously recorded a revaluation surplusrelated to this machine of $3,900. What journal entries arerequired to record the sale? For compound entries, if an amount boxdoes not require an entry, leave it blank or enter "0".

Depreciation Expense ????

Accumulated Depreciation ???

Cash ?????

Accumulated Depreciation???????

Truck 37350

Gain on Disposal of PP and E????

Revaluation Surplus 3900

Retained Earnings 3900