Cullumber Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at arate of $3,168 per year, resulting in a balance in accumulated depreciation of $11,088 at December 31, 2020. The machinery is soldon September 1, 2021, for $13,860.Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indentedwhen 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 ExplanationDebitCredit(a)(b)

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Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale.

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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Question

Cullumber Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a
rate of $3,168 per year, resulting in a balance in accumulated depreciation of $11,088 at December 31, 2020. The machinery is sold
on September 1, 2021, for $13,860.
Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (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)
(b)

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