1. Is this journal entry correct for the about transaction?

2. How would you update the subsidiary ledger for this transaction (has to somehow account for the 1,250 debit to accumulated depreciation and the 1,250 credit to fixed assets so that the subsidiary ledger matches the general ledger accounts)

Item: Office Furniture Depreciation method: stright-line Estimated life: 5 years Estimated salvage value: $0.00

Sep. 30,2011 asset record DEBIT 50,750 ASSET NET BOOK VALUE: 50,750

Dec. 31, 2011 DEPRECIATION CREDIT 5075 ASSET NET BOOK VALUE: 45,675

Dec.31, 2012 DEPRECIATION CREDIT 10,150 ASSET NET BOOK VALUE: 35,525

Dec. 31, 2013 DEPRECIATION CREDIT 10,150 ASSET NET BOOK VALUE: 25,375

Dec.31, 2014 DEPRECIATION CREDIT 10,150 ASSET NET BOOK VALUE: 15,225

Dec.31, 2015 DEPRECIATION CREDIT 10,150 ASSET NET BOOK VALUE: 5,075

Dec. 31, 2016 DEPRECIATION CREDIT 5075 ASSET NET BOOK VALUE: 0

Sold a desk to Jim Adams for $275 . Jim will pay this amount to Waren in Jan. of 2018. The desk was purchased for a cost of $1,250 on September 30, 2011, along with other furniture costing $49,500 (total purchase was $50,750). The desk was fully depreciated at the end of 2016. " Add a new general ledger account on page 36. Assign it G/L #10210-Accounts Receivable from Employees. Be sure to include this account in the proper section of Waren's 2017 financial statements. . Do not be concerned that the new account is out of sequence in the G/L. Waren reorganizes its chart of accounts and G/L at the beginning of a new fiscal year Don't forget to update the fixed assets subsidiary ledger on pages 42-43. Oo CAO accumulated ep 0D 30900gain on sale To Rerd sale of desk