ASB Ceramics purchased equipment used in the business three years ago for $37,000. The accumulated depreciation account related to the equipment asset account had a balance of $24,000. The equipment had an estimated salvage (residual) value of $5,000 and had an estimated life of four years. A full years depreciation was taken the first year. ASB uses the straight-line depreciation method. All depreciation is usually recorded at year-end. The company sold the equipment in exchange for a promissory note on July 1 of the fourth year for $8,000. Record the appropriate entries necessary.

1.Record 6 months depreciation.

2.Record sale of equipment.