The following information was taken from the records of Dylan€™s Toys:

Equipment with a cost of $8,000 was sold during 2018.
a. How much equipment was purchased during 2018?
b. How much cash was collected on the sale of the equipment during 2018?
c. Provide the journal entry to record the sale of the equipment.

Transcribed Image Text:

2018 2017 Equipment Accumulated depreciation Depreciation expense Gain on sale of equipment $ 45,000 $ 20,000 $(15,000) $(10,000) 7,000 6,000 2,000 500