Asset Disposal Assume that Gonzalez Company purchased an asset on January 1, 2015, for $74,000....
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Asset Disposal Assume that Gonzalez Company purchased an asset on January 1, 2015, for $74,000. The asset had an estimated life of six years and an estimated residual value of $7,400. The company used the straight-line method to depreciate the asset. On July 1, 2017, the asset was sold for $48,700.
How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry" and leave the amount box blank. If the effect on a financial statement item is negative, i.e, a decrease, be sure to enter the answer with a minus sign. Remember: if a contra account is increased, it will have the effect of decreasing the corresponding financial statement item.
| Balance Sheet | Income Statement | |||||||||||||
| Stockholders' | Net | |||||||||||||
| Assets | = | Liabilities | + | Equity | Revenues | Expenses | = | Income | ||||||
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