Kelly Petroleum Products Owns Furniture That Was Purchased for $19,600

question 102

Multiple Choice

Kelly Petroleum Products owns furniture that was purchased for $19,600.Accumulated depreciation is $17,300.The furniture was sold for $3,800.Which of the following is the correct entry to record the transaction?

• A) \[\begin{array} { | l | r | r | }
• \hline \text { Accumulated depreciation } & 17,300 & \\
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Gain on sale } & & 1,500 \\
• \hline \text { Furniture } & & 19,600 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | l | }
• \hline \text { Accumulated depreciation } & 17,300 & \\
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Furniture } & & 31,100 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | r | r | }
• \hline \text { Furniture } & 19,600 & \\
• \hline \text { Gain on sale } & 3,800 & \\
• \hline \text { Cash } & & 2,700 \\
• \hline \text { Accumulated depreciation } & & 17,300 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Furniture } & 19,600 & \\
• \hline \text { Cash } & 2,700 & \\
• \hline \text { Gain on sale } & & 5,000 \\
• \hline \text { Accumulated depreciation } & & 17,300 \\
• \hline
• \end{array}\]

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Definitions:

Gradually Correct

To make changes or adjustments in a steady, step-by-step manner to improve or rectify.

Reflect

To carefully think about or consider past experiences, actions, or decisions to gain insights or learn lessons.

Principled Negotiation

A negotiation strategy that focuses on mutual interests and objective standards rather than power, pressure, or personal desires, aiming for a win-win outcome.

Positional Negotiation

A bargaining process where each party takes a specific stance or position and negotiates from that baseline, often leading to a win-lose outcome.