Question 2 Flint Corporation owns machinery that cost 28400

Question 2 Flint Corporation owns machinery that cost $28,400 when purchased on July 1, 2014. Depreciation has been recorded at a rate of $3,408 per year, resulting in a balance in accumulated depreciation of $11,928 at December 31, 2017. The machinery is sold on September 1, 2018, for $7,384. pare journal entries to (a) update depreciation for 2018 and (b) record the sale. (Round answers to O decimal places, eg, S275. dit account titles 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.) No. Account Titles and Explanation Debit Credit

Solution

CR

Calculation Of Depreciation :

Full year Depreciation 3408

Depreciation for 8 months 3408*(8/12)

2272

	Flint Corporation
	Journal
Date	Description	DR	CR
1/9/2018	Depreciation A/c                                        Dr	2272
	To Accumulated Depreciation		2272
	( Being Depreciation charged to accumulated Depreciation A/c)
1/9/2018	Bank A/c Dr	7348
	Accumulated Depreciation A/c         Dr	14200
	Loss on sale of machinery Dr	6852
	To Machinery A/c		28400
	(Being Asset sold for loss)