[mskwan34]

Sold equipment in exchange for $55,000 cash plus receipt of a $25,000, 120-day, 6% note. The equipment had cost $96,000 and had accumulated depreciation of $10,000.

[john6]

Entry for this statement
1. depreciation a/c dr. $10000
To accumulated depreciation a/c $10000
2.asset sold a/c dr. $96000
To asset a/c $96000
(cost of sold equipment)
3.accumulated depreciation a/c dr. $10000
To asset sold a/c $10000
(accumulated dep. On sold machinery)
4.p/l a/c dr. $6000
To asset sold a/c $6000
( loss on sale)