Cheyenne Corporation owns machinery that cost $23,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,832 per year, resulting in a balance in accumulated depreciation of $9,912 at December 31, 2020. The machinery is sold on September 1, 2021, for $12,390.

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Business

Kristian Randolph

21 December, 00:47

Cheyenne Corporation owns machinery that cost $23,600 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,832 per year, resulting in a balance in accumulated depreciation of $9,912 at December 31, 2020. The machinery is sold on September 1, 2021, for $12,390.

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Alessandra Ali · Answer 1

This question is incomplete. However, I searched the web and found a similar question that is asking to "Prepare journal entries to (a) update depreciation for 2021"

Explanation:

The general journal entries will be as follows;

From Jan 1st to Sept. 1st, there are 8 months of depreciation. If yearly depreciation is $2,832, it means that monthly depreciation is $236. Therefore, depreciation expense for the 8 months would be (8*236 = $1,888). For journal entry, you will debit depreciation expense and credit accumulated depreciation;

Dr. Cr.

Depreciation $1,888

Acc. depreciation $1,888