FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:**Sunland Corporation’s Machinery Depreciation and Sale:**
Sunland Corporation owns machinery that cost $25,200 when purchased on July 1, 2022. Depreciation has been recorded at a rate of $3,024 per year, resulting in a balance in accumulated depreciation of $10,584 at December 31, 2025. The machinery is sold on September 1, 2026, for $13,230.
**Tasks:**
1. **Update Depreciation for 2026:**
- Prepare the necessary journal entries to account for the depreciation expense up until the sale date in 2026.
2. **Record the Sale:**
- Document the journal entries required to record the sale of the machinery.
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