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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
What would be the correct entry for part b
Transcribed Image Text:**Sheridan Company Office Equipment Sale Journal Entries**
Sheridan Company sold office equipment on July 31, 2022, for $18,400 cash. The equipment originally cost $73,700 and had accumulated depreciation of $42,500 as of January 1, 2022. Depreciation for the first 7 months of 2022 is $4,950.
**Required: Prepare the journal entries to:**
1. **Update depreciation to July 31, 2022**
2. **Record the sale of the equipment**
*Note: Credit account titles are automatically indented when an amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.*
| No. | Account Titles and Explanation | Debit | Credit |
|-----|-------------------------------------------------|--------|---------|
| (a) | Depreciation Expense | 4950 | |
| | Accumulated Depreciation-Equipment | | 4950 |
| (b) | Cash | 18400 | |
| | Accumulated Depreciation-Equipment | 42500 | |
| | Loss on Disposal of Plant Assets | 12800 | |
| | Equipment | | 73700 |
This entry outlines the financial adjustments needed to update depreciation and reflect the sale of the equipment.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education