In: Accounting
Sunland Corporation owns machinery that cost $24,000 when
purchased on July 1, 2017. Depreciation has been recorded at a rate
of $2,880 per year, resulting in a balance in accumulated
depreciation of $10,080 at December 31, 2020. The machinery is sold
on September 1, 2021, for $12,600.
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.)