I have a business that sold a piece of equipment for $8000. I am trying to T account it:

Equipment
Credit $8000 (1)

Cash
Debit $8000 (1)

??
Credit $8000 (2)

Owner's Equity
Debit $8000 (2)


What I am missing is what T account the Owner's Equity comes from. I cannot remember which one this should come out of.

philly75, there should not be an adjustment to owner's equity.

The asset was traded for another asset, namely cash.

You should remove any accumulated depreciation taken on the equipment and book either a gain or loss on the sale of the equipment.

See if this makes since to you:

(1) Equipment - credit
(1) accumulated depreciation - debit
(1) Cash - debit
(1) Loss or gain on sale of asset - <debit> or credit

The loss or gain is sales price minus basis in equipment.