Crane Company sells office equipment on July 31, 2022, for $20,440 cash. The office equipment originally cost $82,640 and as of January 1, 2022, had accumulated depreciation of $38,770. Depreciation for the first 7 months of 2022 is $4,250.Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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 0 for the amounts.)   No. Account Titles and Explanation Debit Credit (a) Enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount   enter an account title to update depreciation to July 31 Enter a debit amount Enter a credit amount (b) Enter an account title to record the sale of the equipment Enter a debit amount Enter a credit amount   Enter an account title to record the sale of the equipment Enter a debit amount Enter a credit amount   Enter an account title to record the sale of the equipment Enter a debit amount Enter a credit amount   Enter an account title to record the sale of the equipment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Crane Company sells office equipment on July 31, 2022, for $20,440 cash. The office equipment originally cost $82,640 and as of January 1, 2022, had accumulated depreciation of $38,770. Depreciation for the first 7 months of 2022 is $4,250.

Prepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment. (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 0 for the amounts.)

 

No.
Account Titles and Explanation
Debit
Credit
(a)
Enter an account title to update depreciation to July 31
Enter a debit amount
Enter a credit amount
 
enter an account title to update depreciation to July 31
Enter a debit amount
Enter a credit amount
(b)
Enter an account title to record the sale of the equipment
Enter a debit amount
Enter a credit amount
 
Enter an account title to record the sale of the equipment
Enter a debit amount
Enter a credit amount
 
Enter an account title to record the sale of the equipment
Enter a debit amount
Enter a credit amount
 
Enter an account title to record the sale of the equipment

 

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