Spa Sources Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000. The useful life was expected to be 8 years and straight-line depreciation is used. At the end of 2014, the book value of the machine was $35,000. Spa Sources sold the machine for $32,000 cash on October 1, 2015.

Required:

A. Prepare the journal entry to record depreciation for 201 5 up to the date of sale.

B. Prepare the journal entry to record the sale of the machine.

Answer rating: 100% (QA)

A Depreciation Expense 4688 Accumulated Depreciation ... View the full answer