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Anna [14]
1 year ago
15

Furniture costing $75,900 is sold at its book value in 2019. Acquisitions of furniture total $64,300 cash, on which no depreciat

ion is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Complete the general ledger accounts to calculate cash received from the sale of furniture.
Business
1 answer:
SVEN [57.7K]1 year ago
7 0

Answer:

Hie, the question you have provided is missing information relating to <em>Accumulated depreciation</em> or <em>book value of the furniture</em> as well as <em>profit</em> or <em>loss</em> on sale of furniture.

However, important principles are explained below :

The Furniture Disposal T - Account is used to calculate the cash received from the sale of furniture.

The Format of the Account is as follows :

Debits  :

Record the Costs of the Furniture Sold. In this cases Cost is $75,900

Record the Profit on Sale of Furniture (if there was profit). The information is incomplete in this case.

Credits :

Record the Accumulated Depreciation on the Furniture. This figure is missing.

Record the Loss on Sale of Furniture (if there was a loss). The information is incomplete in this case.

The Balancing figure would be the Cash Received on sale of Furniture and to be recorded here.

Conclusion :

The Cash Received on Sale of Furniture is a Balancing figure of the Furniture Disposal T - Account.

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