Buffalo Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,448 per year, resulting in a balance in accumulated depreciation of $8,568 at December 31, 2020. The machinery is sold on September 1, 2021, for $5,304. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Round answers to 0 decimal places, eg. 5,275. Credit account titles 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.)

Buffalo Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,448 per year, resulting in a balance in accumulated depreciation of $8,568 at December 31, 2020. The machinery is sold on September 1, 2021, for $5,304. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Round answers to 0 decimal places, eg. 5,275. Credit account titles 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.)

Name: Buffalo Corporation owns machinery that cost $20,400 when purchased o
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Description: Buffalo Corporation owns machinery that cost $20,400 when purchased on July 1, 2017. Depreciation has been recorded at a rateof $2,448 per year, resulting in a balance in accumulated depreciation of $8,568 at December 31, 2020. The machinery is sold

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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