This is driving me crazy! Confusing with debit and credit.

Here the questions..

Purchased land for 2,630,000. Debit would be Land and credit Cash.. I got that!

Sold equipment that cost $600,000 when puchased on January 2003, the equipment was sold for $350,000 today.

What would be debit and credit? There are 2 transactions need for this one, Help!

Hi Cmar,

1st figure your gain & loss

Equipment 600k
Accum Depr?? (assume 300k)
Net Book Value 300K

Sales price 350K
Net BV 300k
Gain 50K

Dr Cash
Dr Accum Depr
Cr Gain of asset disposal
Cr Equip

Hope that help

During the year 2008, May 1st sold equipment that cost $600,000 when purchased on January 1, 2003. The equipment was sold for $350,000.
This is what I had. It stated that I need 2 transactions.

Debit Equipment 600,000

Credit Cash 600,00

Then

Dr - cash $350,000
Dr Accumulated equipm $250,00
Cr - gain on disposal $250,000
Cr - equipment $350,000

Does this make sense?

You need to record the acquisition of the equip on Jan 1st, 2003. Am I understanding it correctly?

Dr Equip
Cr Cash
To record cost basis of new equip as 1/1/03

Disposal of asset w/out gain or loss.
What is your accumulative depreciation? 250K?
If so, this is what you do?

Cost basis for Equip 600K
Less: Accum Depre 250K
Book Value 350K
Proceed from sales 350K
No gain or loss 0

Dr. Cash 350K
Dr. Accum Depre 250K
Cr. Equipment 600k
To record disposal of asset

That makes sense I think. Thanks!

Next question if you can help...

June 1st, sold land purchased on June 1st for 1,800,000. The land cost $500,000.

Would that be..

Dr Cash 1800,000
Cr Land 500,000
Cr gain 1300,000

Yes, the sale of the land JE is correct. You only need remove the asset from your books and recognize and gain/loss for the difference since GAAP does not permit depreciation on land.