December 11

Used store equipment was sold for $320 cash. The equipment originally cost $1250 and depreciation to September 30 of this year (the end of the third quarter) totals $820. The asset depreciates on a straight line basis at a rate of $20 per month and depreciation is calculated to the nearest month. Two Journal entries are required. At the invoice prompt type ASALE

This is my journal entry: BU

12/11 101 Cash $320 (DR)

132 Accumulated Depreciation, Store Equipment $860 (DR)

721 Gain on Sale of Asset $70 (DR)

131 Store Equipment $1250 (CR)

* Checking numbers my account (610 )Depreciation Expense, Store equipment is under $40 and my account (132) accumulate depreciation, equipment is over $40. I believe I should have depreciated 2 more months until it the equipment was sold. (OCT and NOV (2*20=40) but I have to split the journal entry into 2 and correct the first.

Journal Entry