2003loganreed
13.01.2021 •
Business
Flounder Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,168 per year, resulting in a balance in accumulated depreciation of $11,088 at December 31, 2020. The machinery is sold on September 1, 2021, for $13,860. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale.
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Ответ:
A. Dr Depreciation Expense $2,123
Cr Accumulated Depreciation $2,123
B. Dr Cash $13,860
Dr Accumulated Depreciation$13,211
Cr Machiner$26,400
Cr Gain on Disposal of Machinery$671
Explanation:
Preparation of the journal entries to (a) update depreciation for 2021 and (b) record the sale.
A. Preparation of the journal entries to (a) update depreciation for 2021
Dr Depreciation Expense $2,123
Cr Accumulated Depreciation $2,123
(3185*8/12)
B. Preparation of the journal entries to record the sale
Dr Cash $13,860
Dr Accumulated Depreciation$13,211
($11,088+$2,123)
Cr Machiner$26,400
Cr Gain on Disposal of Machinery$671
[($13,860+$13,211)+$26,400]
Ответ: