Question

On December 29, 2020, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2019. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

(Debit) Depreciation expense 2,000

(Credit) Accumulated depreciation 2,000

Step-by-step explanation:

They are only asking for the accumulated depreciation up-to-date, which means for the 1st year. They give you the annual depreciation of $2,000 so we only need to enter that. No need to enter the sale of the delivery van.