Corey Sales Sold Its Old Office Furniture for $1,100

question 85

Multiple Choice

Corey Sales sold its old office furniture for $1,100.The original cost was $8,000,and at the time of sale,it had accumulated depreciation of $7,000.What was the effect of the transaction?

• A) Gain of $100
• B) Gain of $400
• C) Loss of $1,600
• D) Loss of $600

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Definitions:

Credits

Accounting entries that increase liabilities or decrease assets, typically signaling the source of financing or revenue.

Single-Column Purchases Journal

An accounting journal used to record all purchase transactions of a business in a single column, typically for the purchase of inventory on credit.

Cash Payments Journal

A business ledger that documents every payment or cash disbursement made by a company.

General Journal

An accounting journal where all types of transactions are initially recorded, before being posted to specific accounts in the ledger.