Question

Metlock Corporation owns machinery that cost $25,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,072 per year, resulting in a balance in accumulated depreciation of $10,752 at December 31, 2020. The machinery is sold on September 1, 2021, for $13,440. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale

Answer 1

journal entries to :

(a) update depreciation for 2021

Debit : Depreciation expense $2,048

Credit : Accumulated depreciation $2,048

(b) record the sale

Debit : Cash $13,440

Credit : Cost $25,600

Step-by-step explanation:

First update the depreciation then do the sale journal