What would the journal entry be for this question?
In May 2009, management of JJB determined that their assorted chocolate line of business was not profitable and could not compete with Rogers Chocolate and decided to discontinue operations. On Sept 23rd, 2009 JJB sold all assets relating to the Chocolate business and recorded a gain of $69,000 before tax on the transaction.
Dr
Accounts Receivable 96,500
Building 375,000
Cash 145,600
Cost of Goods Sold 205,800
Equipment 375,000
General and Administrative Expenses 175,000
Insurance Expense 2,500
Interest Expense 19,000
Inventory 164,000
Land 780,000
Loss from extraordinary item 55,000
Net operating loss for discontinued operations 35,000
Office Furniture 65,000
Prepaid Insurance 45,000
Prepaid Rent 30,000
Rent Expense 15,000
Sales Discounts 15,000
Sales Returns 2,500
Supplies 6,500
Vehicles 40,000
Cr
Accounts Payable 78,900
Accumulated Amortization - Building 120,000
Accumulated Amortization - Equipment 150,000
Accumulated Amortization - Office Furniture 15,000
Accumulated Amortization - Vehicles 15,000
Allowance for doubtful accounts 37,000
Bonds Payable 500,000
Common Shares 305,000
Gain on sale of assets from discontinued operations 69,000
Interest Revenue 18,000
Notes Payable 325,000
Preferred Shares 125,000
Retained Earnings 147,800
Sales Revenue 685,000
Unearned Revenue 56,700
