Ottawa Corporation owns machinery that cost $69,200 when purchased on July 1, 20
ID: 2455119 • Letter: O
Question
Ottawa Corporation owns machinery that cost $69,200 when purchased on July 1, 2011. Depreciation has been recorded at a rate of $8,304 per year, resulting in a balance in accumulated depreciation of $29,064 at December 31, 2014. The machinery is sold on September 1, 2015, for $36,330. Prepare journal entries to (a) update depreciation for 2015 and (b) record the sale
No.
Account Titles and Explanation
Debit
Credit
(a)
(b)
No.
Account Titles and Explanation
Debit
Credit
(a)
Depreciation Expense
??
Accumulated Depreciation-Machinery
??
(b)
Cash
36330
Accumulated Depreciation-Machinery
??
Machinery
??
Gain on Disposal of Machinery
??
Explanation / Answer
Depreciation Expense 5536 =8304/12*8 Accumulated Depreciation-Machinery 5536 Cash 36330 Accumulated Depreciation-Machinery 34600 =29064+5536 Machinery 69200 Gain on Disposal of Machinery 1730
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.