Bull Run Sold a Computer for $1,200 on November 10th

question 58

Essay

Bull Run sold a computer for $1,200 on November 10th of the current year. The computer was purchased for $2,800. Bull Run had taken $1,000 of depreciation deductions. What is Bull Run's gain or loss realized on the computer?

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Definitions:

Adjusted Balances

Balances that have been modified to reflect corrections or adjustments to initial reported amounts, often in the context of bank accounts or financial statements.

Closing Accounts

The process of zeroing out income and expense accounts to transfer their balances to permanent accounts at the end of an accounting period.

Ledger

A book or collection of financial accounts where all transactions are summarized and recorded using a double-entry bookkeeping system.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after making adjusting entries.