Cullumber Productions Ltd$.$ purchased equipment on February $1,2024,$ for $$43,800.$ The company estimated the equipment would have a useful life of three years and would produce $10,000$ units, with a residual value of $$8,800.$ During $2024,$ the equipment produced $3,500$ units. On October $31,2025,$ the equipment was sold for $$11,500$; it had produced $4,500$ units that year.

Date

Account Titles and Explanation

Debit

Credit

$2024$

Equipment

Cash

Depletion Expense

Accumulated Depreciation $-$ Equipment

$2025$

Depletion Expense

Accumulated Depreciation $-$ Equipment

$($To record depreciation expense$)$

Accumulated Depreciation $-$ Equipment