Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2021. Depreciation has been recorded
Question:
Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2021. Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2025. The machinery is sold on September 1, 2026, for $10,500. Prepare journal entries to
(a) Update depreciation for 2026 and
(b) Record the sale.
Step by Step Answer:
a Depreciation Expense 2400 x 812 Accumula...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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