Blue Spruce Corp. sells equipment on September 30, 2019, for $17,600 cash. The equipment originally cost $72,700 and as of January 1, 2019, had accumulated depreciation of $41,700. Depreciation for the first 9 months of 2019 is $4,850. Prepare the journal entries to (a) update depreciation to September 30, 2019, and (b) record the sale

Question

Abbey Li

Business

6 January, 21:46

Blue Spruce Corp. sells equipment on September 30, 2019, for $17,600 cash. The equipment originally cost $72,700 and as of January 1, 2019, had accumulated depreciation of $41,700. Depreciation for the first 9 months of 2019 is $4,850. Prepare the journal entries to (a) update depreciation to September 30, 2019, and (b) record the sale

+2

Answers (1)

Know the Answer?

Ruben Mahoney · Answer 1

(a) update depreciation to September 30, 2019 and

Dr Depreciation Expense--Office Equipment 4,850

Cr Accumulated Depreciation--Office Equipment 4,850

(b) record the sale of the equipment.

Dr Cash 17,600

Dr Accumulated Depreciation--Office Equipment 46,550

Dr Loss on Disposal 8,550

Cr Office Equipment 72,700