Quinn Company sells office equipment on July 31, 2014, for $21,000 cash. The office equipment originally cost

Question:

Quinn Company sells office equipment on July 31, 2014, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2014, had accumulated depreciation of $42,000. Depreciation for the first 7 months of 2014 is $4,600. Prepare the journal entries to

(a) Update depreciation to July 31, 2014, and

(b) Record the sale of the equipment.