The following data are extracted from the financial statements of Hippolyta Ltd. Additional information: a. Proceeds from

Question:

The following data are extracted from the financial statements of Hippolyta Ltd. 

Additional information: 

a. Proceeds from sale of equipment, $75 000 

b. Net book value (cost less accumulated depreciation) of equipment sold, $62 000 

c. Depreciation expense for equipment, $17 000 

d. Some new equipment was purchased during 2019. 

e. Assume all sales and purchases of equipment are for cash.


Required: 

1. Reconstruct the journal entry to record the sale of equipment. 

2. What is the value of the equipment purchased?

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