**Educational Website Content: Journal Entries for Sale of Office Equipment****Scenario:**Wildhorse Co. sells office equipment on July 31, 2022, for $20,600 cash. The office equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 7 months of 2022 is $4,750.**Objective:**Prepare the journal entries to:(a) Update depreciation to July 31, 2022.(b) Record the sale of the equipment.*Note:* 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 0 for the amounts.| No. | Account Titles and Explanation | Debit | Credit ||-----|-------------------------------------------|---------|---------|| (a) | | | || | | | || (b) | | | || | | | || | | | || | | | |Use this template to fill out the appropriate entries for the scenarios described above. This exercise is essential for understanding how to handle equipment sales and depreciation updates in accounting.**Resources:**For further reading and examples, consult the eTextbook and Media section provided.

Answered: Image /qna-images/answer/e559b75c-cc3f-4cb9-be75-410ebeda2219.jpgPrepare the journal entries to (a) update depreciation to July 31, 2022, and (b) record the sale of the equipment:

Business

Accounting

Wildhorse Co. sells office equipment on July 31, 2022, for $20,600 cash. The office equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 7 months of 2022 is $4,750. 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 O for the amounts.)

Wildhorse Co. sells office equipment on July 31, 2022, for $20,600 cash. The office equipment originally cost $73,300 and as of January 1, 2022, had accumulated depreciation of $42,100. Depreciation for the first 7 months of 2022 is $4,750. 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 O for the amounts.)

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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