At 31 December 2021, Golden Music Company has the following account balances before recording any adjusting entries:

	Debit	Credit
Cash	$89,670
Accounts Receivable	$21,100
Equipment	$100,000
Allowance for doubtful accounts		$700
Accumulated Depreciation- Equipment		$20,000
Bond payable		$50,000
Premium on bond payable		$641,60

1. Golden Music Company has purchased one equipment for $100,000 on 1 July 2020. The equipment has a useful life of 5 years with residual value of $5,000 and has been depreciated using double declining balance. The equipment was sold on 31 December 2021 for $40,000. No depreciation has been recorded in 2021.