Sheridan Company sells office equipment on July 31, 2022, for $18,400 cash. The office equipment originally cost $73,700 and as January 1, 2022, had accumulated depreciation of $42,500. Depreciation for the first 7 months of 2022 is $4,950. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account ti 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 O for the amounts.) No. Account Titles and Explanation Debit Credit 4950 (a) Depreciation Expense 4950 Accumulated Depreciation-Equipment 18400 (b) Cash 42500 Accumulated Depreciation-Equipment 12800 Loss on Disposal of Plant Assets 73700 Equipment

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
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What would be the correct entry for part b
Sheridan Company sells office equipment on July 31, 2022, for $18,400 cash. The office equipment originally cost $73,700 and as c
January 1, 2022, had accumulated depreciation of $42,500. Depreciation for the first 7 months of 2022 is $4,950.
Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account title
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 O for the amounts.)
No. Account Titles and Explanation
Debit
Credit
4950
(a)
Depreciation Expense
4950
Accumulated Depreciation-Equipment
18400
(b)
Cash
42500
Accumulated Depreciation-Equipment
12800
Loss on Disposal of Plant Assets
73700
Equipment
Transcribed Image Text:Sheridan Company sells office equipment on July 31, 2022, for $18,400 cash. The office equipment originally cost $73,700 and as c January 1, 2022, had accumulated depreciation of $42,500. Depreciation for the first 7 months of 2022 is $4,950. Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account title 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 O for the amounts.) No. Account Titles and Explanation Debit Credit 4950 (a) Depreciation Expense 4950 Accumulated Depreciation-Equipment 18400 (b) Cash 42500 Accumulated Depreciation-Equipment 12800 Loss on Disposal of Plant Assets 73700 Equipment
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