Ask Question
23 June, 04:15

Sheridan Company sells office equipment on July 31, 2017, for $20,320 cash. The office equipment originally cost $84,510 and as of January 1, 2017, had accumulated depreciation of $41,710. Depreciation for the first 7 months of 2017 is $3,670.

Prepare the journal entries to (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment.

+4
Answers (1)
  1. 23 June, 05:03
    0
    A.

    Jul 31

    Dr Depreciation expense 3,670

    Cr Accumulated depreciation 3,670

    b.

    Jul-31

    Dr Cash 22,320

    Dr Accumulated depreciation 43,380

    Dr Loss on disposal of Equipment 18,810

    Cr Equipment 84,510

    Explanation:

    Sheridan Company Journal entries

    a.

    Jul-31

    Dr Depreciation expense 3,670

    Cr Accumulated depreciation 3,670

    (To record depreciation for 7 months)

    b.

    Jul-31

    Dr Cash 22,320

    Dr Accumulated depreciation 43,380

    Dr Loss on disposal of Equipment 18,810

    Cr Equipment 84,510

    (To record disposal of equipment)

    Loss on disposal of Equipment

    $84,510-$20,320=$64,190

    $64,190-$41,710=$22,480

    $22,480-$3,670=$18,810
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Sheridan Company sells office equipment on July 31, 2017, for $20,320 cash. The office equipment originally cost $84,510 and as of January ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers