Sheridan Limited sold equipment on September 30, 2024, for $39,980 cash. The equipment originally cost $145,990...

 

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Sheridan Limited sold equipment on September 30, 2024, for $39,980 cash. The equipment originally cost $145,990 when purchased on January 1, 2022. It had an estimated residual value of $4,330 and a useful life of five years. Depreciation is recorded annually and was last recorded on December 31, 2023, the company's year end. (a) Prepare the journal entry to update depreciation using the straight-line method to September 30, 2024. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Sheridan Limited sold equipment on September 30, 2024, for $39,980 cash. The equipment originally cost $145,990 when purchased on January 1, 2022. It had an estimated residual value of $4,330 and a useful life of five years. Depreciation is recorded annually and was last recorded on December 31, 2023, the company's year end. (a) Prepare the journal entry to update depreciation using the straight-line method to September 30, 2024. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Answer rating: 100% (QA)

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