Sunland Company sells office equipment on July 31, 2022, for $22,080 cash. The office equipment originally cost $72,560 and as of January 1, 2022, hadaccumulated depreciation of $38,910. Depreciation for the first 7 months of 2022 is $4,980.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (Credit account titles areautomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles andenter O for the amounts.)No. Account Titles and Explanation(a)Depreciation ExpenseAccumulated Depreciation-Equipment(b)CashDebit4,98022,080Accumulated Depreciation-Equipment43890EquipmentLoss on Disposal of Plant Assets6,590Credit4,98072,560

Step 1:The required journal entries for the given transactions are presented hereunder:No.Account…

Answered: Sunland Company sells office equipment…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Every entry should have narrated, answer in text form please
1
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