On January Couture Clothing Consignments purchased showroom fixtures for $ cash, expecting the fixtures to remain in service for five years.
Couture has depreciated the fixtures on a doubledecliningbalance basis, with zero residual value. On August Couture sold the fixtures for $
cash. Record both depreciation expense for and sale of the fixtures on August Record debits first, then credits. Select the explanation on the last
line of the journal entry table. Note that depreciation was recorded and posted in
Begin by recording the depreciation expense for January through August
Before recording the sale of the fixtures, let's calculate any gain or loss on the sale of the fixtures.
Market value of assets received
Less: Book value of asset disposed of
Cost
Less: Accumulated Depreciation
Gain or Loss
