Question

Sandhill Co. sells office equipment on July 31, 2017, for $22,430 cash. The office equipment originally cost $77,870 and as of January 1, 2017, had accumulated depreciation of $36,830. Depreciation for the first 7 months of 2017 is $4,580. Prepare the journal entries to (a) update depreciation to July 31, 2017.

Answer 1

Answer:

Debit Depreciation expense account    $4,580

Credit Accumulated  depreciation          $4,580

Being entries to recognize depreciation for the first 7 months of 2017

Explanation:

Given that depreciation for the first 7 months of 2017 is $4,580, the journals to update depreciation to July 31, 2017 is

Debit Depreciation expense account    $4,580

Credit Accumulated  depreciation          $4,580

Being entries to recognize depreciation for the first 7 months of 2017 before disposal of the office equipment.