Sal’s Salon purchased new furniture and fixture for its store on April 1, 2001. The furniture and fixture is expected to have a 10-year life and no residual value. The

Sal’s Salon purchased new furniture and fixture for its store on April 1, 2001. The furniture and fixture is expected to have a 10-year life and no residual value. The following expenditures were associated with the purchase:
Cost of the furniture and fixture $10,000
Freight charges 350
Sales taxes 600
Installation of furniture and fixture 50
Cost to repair F & F damaged during installation 500
Instructions

Assume that Sal’s Salon sold the old furniture that was being replaced. The old furniture and fixture had originally cost $6,000. Its book value at the time of the sale was $500. Record the sale of the old furniture and fixture under the following conditions:
1. The furniture and fixture was sold for $900 cash.
2. The furniture and fixture was sold for $200 cash.

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