Starmount Company Ltd B) C) D)

question 98

Multiple Choice

Starmount Company Ltd. sold an old copy machine for $3,200. The old copy machine cost $9,000 and had accumulated amortization totalling $6,500. The entry to record the sale is:

• A) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,200 & \\
• \hline \text { Accum. Amort.-Office Equip. } & 6,500 & \\
• \hline \text { Office Equipment } & & 9,000 \\
• \hline \text { Gain on Sale of Office } & & \\
• \text { Equip. } & & 700\\
• \hline
• \end{array}\)
• B) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,200 & \\
• \hline \text { Loss on Sale of Office Equip. } & 5,800 & \\
• \hline \text { Office Equipment } & & 9,000 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,200 & \\
• \hline \text { Accum. Amort.-Office Equip. } & 6,500 & \\
• \hline \text { Office Equipment } & & 9,700 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,200 & \\
• \hline \text { Loss on Sale of Office Equip. } & 3,300 & \\
• \hline \text { Office Equipment } & & 6,500 \\
• \hline
• \end{array}\)

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Definitions:

Demand Forecast

The process of estimating the future demand for products or services in a given market.

Profit Forecast

An estimation of future financial earnings or losses, typically focusing on income and expenses, over a specified period.

Sole Proprietorship

A business structure where a single individual owns, manages, and is responsible for all aspects of the business.

Married Couple

A legally wedded partnership comprising two individuals who have undergone a marriage ceremony and are recognized as spouses.