Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   Accounting 102 (https://www.askmehelpdesk.com/showthread.php?t=58702)

  • Jan 30, 2007, 12:53 PM
    BABYBOY18
    Accounting 102
    A piece of equipment with a book value of $5000 is sold for $3000. What is the amountof gainor loss on the sale? Show me how to get this answer
  • Jan 30, 2007, 09:39 PM
    CaptainForest
    Dr. Cash 3,000
    Cr. Equipment 5,000

    Since you made no reference to depreciation, I will assume there is none.

    Plug the difference, Dr. Loss 2,000

    You can also think about it logically. If I sell something that is worth $5,000 for only $3,000, then I sold it for $2,000 less than what its worth, therefore I lost $2,000.

  • All times are GMT -7. The time now is 02:54 PM.