On 30 November 2015 a finishing machine was sold. Its capital cost was $25,000 and accumulated depreciation was $13,000

[answerhappygod]

On 30 November 2015 a finishing machine was sold.
Its capital cost was $25,000 and accumulated depreciation was$13,000 at date of sale. Tip: Accumulated depreciation has beenprovided up to the date of sale. Thus no further depreciation isrequired to be recorded.
The machine was sold on credit to Jake Strong for $14,300(including GST) with the purchaser paying a $1,000 deposit.
Balance date is 30 June 2016.
Required:
(a) RecordGeneral Journal entries to account for the sale of the finishingmachine and post to the relevant ledger accounts.
(b) Transferthe profit or loss on disposal to the Profit and Loss account at 30June.
Tip: as the accumulated depreciation has been provided at thedate of sale, no further depreciation entries are required, and theDepreciation ledger account should have no entries.
GeneralJournal GJ1
Date
Details
Debit
Credit
30/11/15
Transfer assetcost to Disposal Account
30/11/15
Transfer assetaccumulated depreciationto DisposalAccount
30/11/15
Sale of asset toJake Strong
30/11/15
Receipt of depositfrom Jake Strong
30/11/15
Profit on disposalof asset
30/6/16
Transfer Profit on disposal of asset toProfit and Loss account.