A Computer, with a Cost of $10,000 Is Sold on July

question 22

Essay

A computer, with a cost of $10,000 is sold on July 1. Accumulated depreciation up to the date of sale is $5,000. Journalize the entries for the disposal of the computer under the following INDEPENDENT scenarios:
1. The computer was sold for $6,000.
2. The computer was sold for $1,000.
3. The computer is obsolete and was junked.

---

Definitions:

Financial Accounting Standards Board

An independent organization responsible for establishing and improving financial accounting and reporting standards in the United States.

Accounting Principles

Fundamental guidelines or rules that form the basis for accounting practices and financial reporting.

Unrealized Profits

Profits that have been earned but not yet realized through a transaction, often related to investments that have increased in value but have not been sold.

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.