Which of the Following Items Is Included in the Journal

question 20

Multiple Choice

Which of the following items is included in the journal entry if a company sells equipment at a price less than its carrying amount?

• A)A credit to Gain on sale of equipment
• B)A credit to Accumulated depreciation
• C)A debit to Loss on sale of equipment
• D)A debit to Equipment for its carrying amount

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.

Rent Expense

The cost incurred from leasing property or equipment for business operations, recognized on the income statement.

Fees Earned

Income received from providing services.

Wages Expense

The total cost incurred by a business for the payment of wages to employees for a specific period.