question archive Flounder Corporation owns equipment that cost $50,400 when purchased on April 1, 2013
Flounder Corporation owns equipment that cost $50,400 when purchased on April 1, 2013
Subject:AccountingPrice:3.87 Bought7
Flounder Corporation owns equipment that cost $50,400 when purchased on April 1, 2013. Depreciation has been recorded at a rate of $8,400 per year, resulting in a balance in accumulated depreciation of $39,900 at December 31, 2017. The equipment is sold on July 1, 2018, for $10,080.
Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
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Answer
|
No. |
Account Titles and Explanation |
Debit |
Credit |
|
(a) |
Depreciation expense - equipment ($8400 x 6 months/12) |
$4,200 |
|
|
|
Accumulated Depreciation - equipment |
|
$4,200 |
|
|
|
|
|
|
(b) |
Cash |
$10,080 |
|
|
|
Accumulated Depreciation - equipment [$39900 + 4200] |
$44,100 |
|
|
|
Gain on sale/disposal |
|
$3,780 |
|
|
Equipment |
|
$50,400 |
