ACCT 202; CHAPTER 11; #8

Pronghorn Corporation owns machinery that cost $44,000 when purchased on January 1, 2020. Depreciation has been recorded at a rate of $6,600 per year, resulting in a balance in accumulated depreciation of $13,200 at December 31, 2021. The machinery is sold on September 1, 2022, for $28,200.

Prepare journal entry to update depreciation for 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(Account Titles and Explanation); (Debit); (Credit);

Depreciation Expense ??? ???

Accumulated Depreciation - Machinery ??? ???

Prepare journal entry to record the disposal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(Account Titles and Explanation); (Debit); (Credit);

Cash ??? ???

Accumulated Depreciation - Machinery ??? ???

Gain On Disposal Of Machinery ??? ???