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)

Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due factors like wear and tear, or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life of the asset. Pass necessary journal entries.Requirement b: Pass necessary journal entry.Working notes:

Answered: Prepare journal entries to (a) update…

Business

Accounting

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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