Mallard Limited sold a piece of equipment August 1, 2020 for proceeds of $18,000. The equipment had an original value of $60,000 and was purchased on January 1, 2017. It was estimated to have a residual value of $3,000 and 5-year useful life. Mallard uses the straight-line method (monthly basis). Mallard has a December 31 year end.

Instructions:

Journalize all entries required to update depreciation and record the sale of the asset in 2020.