JournaldrillSelling equipment at a loss
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
Elmwood Fitness sells a set of rowing machines for $9,100 cash. The machines cost $38,000, and accumulated depreciation, updated to the date of sale, is $26,400.
What this exercise teaches
Book value is $38,000 - $26,400 = $11,600. Cash of $9,100 is $2,500 less than book value, a loss.
A hint if you get stuck
Remove the asset's cost and its accumulated depreciation; the shortfall between cash and book value is a loss.
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