Arma Ltd. sells equipment on September 30, 2020, for 20,000 cash. The equipment originally cost 72,000 and
Question:
Arma Ltd. sells equipment on September 30, 2020, for £20,000 cash. The equipment originally cost £72,000 and as of January 1, 2020, had accumulated depreciation of £42,000. Depreciation for the first 9 months of 2020 is £4,800. Prepare the journal entries to (a) update depreciation to September 30, 2020, and (b) record the sale of the equipment.
Step by Step Answer:
a Depreciation Expense 4800 Accumulated Depreciation x Equipment 4800 b Cash 20000 Accumulated ...View the full answer
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt
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A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
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