Karma Farming sells equipment on August 31 2020, for $20,000 cash. The equipment originallycost $60,000 and as of January 1, 2020, had accumulated depreciation of $38,000. Depreciation forthe first 8 months of 2020 is $6,000.Instructions:Prepare the journal entries to (a) update depreciation to August 31, 2020 and (b) record the sale ofthe equipment.

Answer rating: 100% (QA)

A E 1 Date Accounts title and explanation Debit Credit De... View the full answer