Blossom Limited sold equipment on September $30,2024,$ for $$37,870$ cash. The equipment originally cost $$156,280$ when purchased

on January $1,2022.$ It had an estimated residual value of $$4,380$ and a useful life of five years. Depreciation is recorded annually and

was last recorded on December $31,2023,$ the company's year end.

Your answer is correct.

Prepare the journal entry to update depreciation using the straight$-$line method to September $30,2024.($List debit entry before

credit entry. 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

Depreclation Expense

Accumulated Depreclation $-$ Equlpment

eTextbook and Media

List of Accounts

Your answer is partially correct.

Prepare the journal entry to record the sale of the equipment. $($List all debit entries before credit entries. 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

Loss on Dlsposal

Accumulated Depreclation $-$ Equlpment

Equlpment