Extract from balance sheets at 30 June: 

Additional information: 

(i). Depreciation expense for the year is $130 000. 

(ii). Cash proceeds for disposal of equipment during the year amounted to $110 000, resulting in a loss on sale of $20 000.

Prepare the journal entry for the disposal of equipment. 

Equipment Less: Accumulated depreciation Equipment net 2019 $ 980 000 (400 000) 480 000 2018 $ 821 000 (320 000) 501 000