Petey's Printing discards a copier that it purchased for $100,000. If the machine's accumulated depreciation is $99,000, what would the journal entry be to record the disposal?
A)Debit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; credit Loss on Disposal of Copier, $1,000.
B)Debit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.
C)Credit Accumulated Depreciation of Copier, $99,000; debit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.
D)Debit Accumulated Depreciation of Copier, $99,000; debit Copier, $100,000; credit Loss on Disposal of Copier, $1,000.
E)Credit Accumulated Depreciation of Copier, $99,000; credit Copier, $100,000; debit Loss on Disposal of Copier, $1,000.

Question

Quizplus · Accepted Answer

The following entries would be made to record the copier being destroyed:
Debit Accumulated Depreciation of Copier, $99,000
Credit Copier, $100,000;
Debit Loss on Disposal of Copier, $1,000.
Key Takeaway: When in doubt, use T-accounts to illustrate the transaction. This will eliminate answers that are not possible, due to the total of the debits not equaling the total of the credit entries.

Petey's Printing Discards a Copier That It Purchased for $100,000