The journal entry to record the sale of the equipments is: a) The amount of cash receipts the company

will budget for sale of the equipments is $19,000 Cash Accumulated depreciation 7,000 (debit) Equipment credit 22,000 (credit) Gain on sale of equipment 4,000 (credit) To balance the entry, the cash receipt is $19,000 ($22,000 + $4,000 $7,000) Alternate solution approach: Cash receipt $x Less equipment book value: Cost $22,000 Less accumulated depreciation $7,000 ($7,000) Equal gain on sale of equipment double underline $4,000

b. the amount of cash receipts the company will budget for the collection of sale revenue is $115,343 Collection of August sales: 7,000 x $13 x0.70 x $17,7455 September sales: 9,100 x $13 x 0.30 $35,490 9,100 x $13 x 070 x $62,108 Cash receipts double underlines $115,343 c. the amount of cash payments for total expense the company will budget for September is $3,167 Rent and property taxes $4,000 Commissions and other selling expenses Related to sales in: August: 7,000 x $13 x 0.25 x 1/3 = $8,450 September: 9,100 x $13 x 0.25 x 2/3 = 19,717 Cash payments for operating expenses = $32,167