Wing Pang Company sells office equipment on September 30, 2012, for $18,307 cash

Question

Wing Pang Company sells office equipment on September 30, 2012, for $18,307 cash. The office equipment originally cost $72,263 and as of January 1, 2012, had accumulated depreciation of $42,659. Depreciation for the first 9 months of 2012 is $4,916. Prepare the journal entries to (a) update depreciation to September 30, 2012, and (b) record the sale of the equipment. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) Account/Description Debit Credit (a) Acc. Dep.-Office equipmentCashLoss on disposalOffice equipmentDep. exp.-Office equipmentGain on disposal Loss on disposalCashOffice equipmentAcc. Dep.-Office equipmentGain on disposalDep. exp.-Office equipment (b) CashLoss on disposalOffice equipmentGain on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipment Dep. exp.-Office equipmentAcc. Dep.-Office equipmentOffice equipmentLoss on disposalGain on disposalCash Dep. exp.-Office equipmentLoss on disposalGain on disposalCashAcc. Dep.-Office equipmentOffice equipment CashLoss on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipmentGain on disposalOffice equipment
Wing Pang Company sells office equipment on September 30, 2012, for $18,307 cash. The office equipment originally cost $72,263 and as of January 1, 2012, had accumulated depreciation of $42,659. Depreciation for the first 9 months of 2012 is $4,916. Prepare the journal entries to (a) update depreciation to September 30, 2012, and (b) record the sale of the equipment. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.) Account/Description Debit Credit (a) Acc. Dep.-Office equipmentCashLoss on disposalOffice equipmentDep. exp.-Office equipmentGain on disposal Loss on disposalCashOffice equipmentAcc. Dep.-Office equipmentGain on disposalDep. exp.-Office equipment (b) CashLoss on disposalOffice equipmentGain on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipment Dep. exp.-Office equipmentAcc. Dep.-Office equipmentOffice equipmentLoss on disposalGain on disposalCash Dep. exp.-Office equipmentLoss on disposalGain on disposalCashAcc. Dep.-Office equipmentOffice equipment CashLoss on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipmentGain on disposalOffice equipment
Account/Description Debit Credit (a) Acc. Dep.-Office equipmentCashLoss on disposalOffice equipmentDep. exp.-Office equipmentGain on disposal Loss on disposalCashOffice equipmentAcc. Dep.-Office equipmentGain on disposalDep. exp.-Office equipment (b) CashLoss on disposalOffice equipmentGain on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipment Dep. exp.-Office equipmentAcc. Dep.-Office equipmentOffice equipmentLoss on disposalGain on disposalCash Dep. exp.-Office equipmentLoss on disposalGain on disposalCashAcc. Dep.-Office equipmentOffice equipment CashLoss on disposalDep. exp.-Office equipmentAcc. Dep.-Office equipmentGain on disposalOffice equipment

Explanation / Answer

(a) Dr Depreciation Expenses $4916 Cr Accumulated Depreciation $4916 (b) Dr Accumulated Depreciation 47575 Dr Cash $18307 Dr Loss on Disposal $6381 Cr Office Equipment 72263 Hope this helps!

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