JournaldrillSelling equipment at a gain
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Brightwell Dairy sells a delivery cooler for $24,000 cash. The cooler cost $72,000, and accumulated depreciation, updated to the date of sale, is $51,500.
What this exercise teaches
Book value is $72,000 - $51,500 = $20,500. Cash of $24,000 exceeds book value by $3,500, a gain.
A hint if you get stuck
Remove the asset's cost and its accumulated depreciation, then compare the cash to book value.
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