I am asking for help with this problem:

At the beginning of the current year, Andy Company has equipment that originally cost $50,000, has $35,000 accumulated depreciation, and is being depreciated at $5,000 per year. Andy sells this equipment for $12,000 at the end of the current year.

Required:

Journal entries to record both the current year's depreciation and the disposal of the equipment.

CHART OF ACCOUNTS

Andy Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
221	Notes Payable
224	Interest Payable
231	Salaries Payable
	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
533	Depreciation Expense
540	Interest Expense
559	Miscellaneous Expenses
882	Gain on Disposal of Property, Plant, and Equipment
892	Loss on Disposal of Property, Plant, and Equipment

CHART OF ACCOUNTS

Andy Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
181	Equipment
189	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
221	Notes Payable
224	Interest Payable
231	Salaries Payable
	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
533	Depreciation Expense
540	Interest Expense
559	Miscellaneous Expenses
882	Gain on Disposal of Property, Plant, and Equipment
892	Loss on Disposal of Property, Plant, and Equipment

General Journal

Journal entries to record both the current year's depreciation and the disposal of the equipment at December 31.

PAGE 9

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6