On January 1,20X6 ,the company sold for 1,800 a piece of equipment costing 3,900. At the date of sale of the equipment had accumulated depreciaition of 2,400. The company recorded the cash received as other revenue in 20X6. Also, the company continued to record depreciation for this equipment in both 20X6 and 20X7 at the rate of 10% of cost.

Recording correcting entries on Dec31,20X7

Case 1: When the company has not yet closed the 20X7 books.

Case 2: When the company has closed the 20X7 books.