Blue Corporation owns machinery that cost $27,200 when purchased on January 1, 2023. Depreciation has been recorded at a rate of $4,080 per year, resulting in a balance in accumulated depreciation of $8,160 at December 31, 2024. The machinery is sold on September 1, 2025, for $17,920. (a) Prepare the journal entry to update depreciation for 2025. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Date Account Titles and Explanation September 1, 2025 Debit Credit
Blue Corporation owns machinery that cost $27,200 when purchased on January 1, 2023. Depreciation has been recorded at a rate of $4,080 per year, resulting in a balance in accumulated depreciation of $8,160 at December 31, 2024. The machinery is sold on September 1, 2025, for $17,920. (a) Prepare the journal entry to update depreciation for 2025. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Date Account Titles and Explanation September 1, 2025 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blue Corporation owns machinery that cost $27,200 when purchased on January 1, 2023. Depreciation has been recorded at a rate of
$4,080 per year, resulting in a balance in accumulated depreciation of $8,160 at December 31, 2024. The machinery is sold on
September 1, 2025, for $17,920.
(a)
Prepare the journal entry to update depreciation for 2025. (Credit account titles are automatically indented when the 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. List debit entry
before credit entry.)
Date
Account Titles and Explanation
September
1, 2025
Debit
Credit
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