Brief Exercise 9-8 Quinn Company sells office equipment on July 31, 2014, for $2

Question

Brief Exercise 9-8

Quinn Company sells office equipment on July 31, 2014, for $22,150 cash. The office equipment originally cost $74,390 and as of January 1, 2014, had accumulated depreciation of $37,090. Depreciation for the first 7 months of 2014 is $4,930.

Prepare the journal entries to (a) update depreciation to July 31, 2014, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

Open Show Work

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

Explanation / Answer

Working Notes

                                   Office Equipment Disposal A/c

Journal Entries Date Particulars LF Dr Amount Cr Amount Answer (a) July 31 Depreciation A/c                                        Dr. $4,930    To Accumulated Dep.A/c $4,930 (Depreciation charged for the 7 months) Answer (b) July 31 Office Equipment A/c                             Dr. $74,390     To Office Equipment Diposal A/c $74,390 (Transferred the office equipment to disposal account) July 31 Accumulated Dep. A/c                             Dr. $42,020     To Office Equipment Diposal A/c $42,020 (Transferred the accumulated dep. to disposal account) July 31 Bank A/c                                                         Dr. $22,150 Profit & Loss A/c                                         Dr. $10,220     To Office Equipment Diposal A/c $32,370 (Office equipment sold at loss)

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