Sweet 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 $12,180. Prepare journal entries to update depreciation for 2018

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Business

Ryker Dudley

3 June, 04:48

Sweet 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 $12,180. Prepare journal entries to update depreciation for 2018

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Brayan Jenkins · Answer 1

The journal entry is shown below:

Depreciation Expense A/c Dr $1,856

To Accumulated Depreciation - Machinery A/c $1,856

(Being depreciation expense is recorded)

The depreciation expense is calculated for eight months (January - August)

The calculation is shown below:

= $2,784 * 8 months : 12 months

= $1,856