Use the information presented for Sim City Corporation in BE10-11, but assume the machinery is sold...

Question

Use the information presented for Sim City Corporation in BE10-11, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to
(a) Update depreciation for 2008, and
(b) Record the sale.

Robert · Accepted Answer

Complete question: 
Sim City Corporation owns machinery that cost $20,000 when purchased on January 1, 2001.  
Depreciation has been recorded at a rate of $3,000 per year, resulting in a balance in accumulated 
depre-  ciation of $9,000 at December 31, 2003. The machinery is sold on September 1, 2004, for 
$10,500.

Use the information presented for Sim City Corporation in BE10-11, but assume the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to (a) Update depreciation for 2008, and (b)...

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