Teal Corporation owns machinery that cost $22,000 when purchased on July 1, 2017. Depreciation has been...
Teal Corporation owns machinery that cost $22,000 when purchased
on July 1, 2017. Depreciation has been recorded at a rate of $2,640
per year, resulting in a balance in accumulated depreciation of
$9,240 at December 31, 2020. The machinery is sold on September 1,
2021, for $11,550.
Prepare journal entries to (a) update depreciation for 2021 and (b)
record the sale. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the
account titles and enter 0 for the amounts.)
Homework Answers
Accumulated depreciation at December 31, 2020 = $9,240
Annual depreciation = $2,640
The machinery is sold on September 1, 2021
Depreciation expense for year 2021 = 2,640 x 8/12
= $1,760
Accumulated depreciation at September 1, 2021 = Accumulated depreciation at December 31, 2020 + Depreciation expense for year 2021
= $9,240 + 1,760
= $11,000
Book value of machine at September 1, 2021 = Cost price - Accumulated depreciation at September 1, 2021
= 22,000 - 11,000
= $11,000
Gain on sale of machine = Sale price - Book value of machine at September 1, 2021
= 11,550 - 11,000
= $550
Journal
| a | September 1, 2021 | Depreciation expense | 1,760 | |
| Accumulated depreciation - Equipment | 1,760 | |||
| b | September 1, 2021 | Cash | 11,550 | |
| Accumulated depreciation - Equipment | 11,000 | |||
| Equipment | 22,000 | |||
| Gain on sale of Equipment | 550 |
Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubt. Thanks.
Add Answer to:
Teal Corporation owns machinery that cost $22,000 when purchased
on July 1, 2017. Depreciation has been...
Culver Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been...
Culver Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been recorded at arate of $2.448 per year, resulting in a balance in accumulated depreciation of $8,568 at December 31, 2020. The machinery is sold on September 1, 2021, for $10,710. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,264 per year, resulting in a balance in accumulated depreciation of $11,424 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,280. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,216 per year, resulting in a balance in accumulated depreciation of $11,256 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,070. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Concord Corporation owns machinery that cost $28,800 when purchased on July 1, 2017. Depreciation has been...
Concord Corporation owns machinery that cost $28,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,456 per year, resulting in a balance in accumulated depreciation of $12,096 at December 31, 2020. The machinery is sold on September 1, 2021, for $15,120. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Bridgeport Corporation owns machinery that cost $21,600 when purchased on July 1, 2017. Depreciation has been...
Bridgeport Corporation owns machinery that cost $21,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,592 per year, resulting in a balance in accumulated depreciation of $9,072 at December 31, 2020. The machinery is sold on September 1, 2021, for $11,340. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Bramble Corporation owns machinery that cost $26,000 when purchased on July 1, 2017. Depreciation has been...
Bramble Corporation owns machinery that cost $26,000 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2020. The machinery Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (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...
Cullumber Corporation owns machinery that cost $20,800 when purchased on July 1, 2014. Depreciation has been...
Cullumber Corporation owns machinery that cost $20,800 when purchased on July 1, 2014. Depreciation has been recorded at a rate of $2,496 per year, resulting in a balance in accumulated depreciation of $8,736 at December 31, 2017. The machinery is sold on September 1, 2018, for $10,920. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Partially correct answer iconYour answer is partially correct. Oriole Corporation owns machinery that cost $23,200 when...
Partially correct answer iconYour answer is partially correct. Oriole Corporation owns machinery that cost $23,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,784 per year, resulting in a balance in accumulated depreciation of $9,744 at December 31, 2020. The machinery is sold on September 1, 2021, for $6,032. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles...
Brief Exercise 10-14 Vaughn Corporation owns machinery that cost $22,400 when purchased on July 1, 2014....
Brief Exercise 10-14 Vaughn Corporation owns machinery that cost $22,400 when purchased on July 1, 2014. Depreciation has been recorded at a rate of $2,688 per year, resulting in a balance in accumulated depreciation of $9,408 at December 31, 2017. The machinery is sold on September 1, 2018, for $11,760 Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Culver Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been recorded at arate of $2.448 per year, resulting in a balance in accumulated depreciation of $8,568 at December 31, 2020. The machinery is sold on September 1, 2021, for $10,710. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
Oriole Corporation owns machinery that cost $27,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,264 per year, resulting in a balance in accumulated depreciation of $11,424 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,280. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Stellar Corporation owns machinery that cost $26,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,216 per year, resulting in a balance in accumulated depreciation of $11,256 at December 31, 2020. The machinery is sold on September 1, 2021, for $14,070. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Concord Corporation owns machinery that cost $28,800 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,456 per year, resulting in a balance in accumulated depreciation of $12,096 at December 31, 2020. The machinery is sold on September 1, 2021, for $15,120. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Bridgeport Corporation owns machinery that cost $21,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,592 per year, resulting in a balance in accumulated depreciation of $9,072 at December 31, 2020. The machinery is sold on September 1, 2021, for $11,340. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Bramble Corporation owns machinery that cost $26,000 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $3,120 per year, resulting in a balance in accumulated depreciation of $10,920 at December 31, 2020. The machinery Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and...
Blue Corporation owns machinery that cost $41,600 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,240 per year, resulting in a balance in accumulated depreciation of $12,480 at December 31, 2021. The machinery is sold on September 1, 2022, for $27,060. Prepare journal entry to update depreciation for 2022. (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...
Cullumber Corporation owns machinery that cost $20,800 when purchased on July 1, 2014. Depreciation has been recorded at a rate of $2,496 per year, resulting in a balance in accumulated depreciation of $8,736 at December 31, 2017. The machinery is sold on September 1, 2018, for $10,920. Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required,...
Brief Exercise 10-14 Vaughn Corporation owns machinery that cost $22,400 when purchased on July 1, 2014. Depreciation has been recorded at a rate of $2,688 per year, resulting in a balance in accumulated depreciation of $9,408 at December 31, 2017. The machinery is sold on September 1, 2018, for $11,760 Prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago