Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2016 Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2019 The machinery is sold on September 1, 2020, for $5,200 A)Prepare Journal entries to update depreciation for 2020 B) Record the sale A) Debit Depreciation Expense 1,600 Credit Accumulated Depreciation Machinery 1,600 b) Debit Cash 20,000 Credit Machinery 20,000 A) Debit Depreciation Expense 1,600 Credit Accumulated Depreciation Machinery 1,600 b) Debit Cash 10,500 and and Accumulated Deprecation Machinery 10,000 Credit Machinery 20,000 and Gain on disposal of Machinery500 A) Debit Depreciation Expense 1,600 Credit Accumulated Depreciation Machinery 1,600 b) Debit Cash 10,500 and and Accumulated Deprecation Machinery 9,000 Credit Machinery 20,000 and Gain on disposal of Machinery500 A) Debit Depreciation Expense 1,600 Credit Accumulated Depreciation Machinery 1,600 b) Debit Cash 5,200 and loss on Disposal of machinery 4,800 and Accumulated Deprecation Machinery 10,000 Credit Machinery 20,000

Question

Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2016  Depreciation has been recorded at a rate of $2,400 per year, resulting in a balance in accumulated depreciation of $8,400 at December 31, 2019  The machinery is sold on September 1, 2020, for $5,200  A)Prepare Journal entries to update depreciation for 2020  B) Record the sale A) Debit Depreciation Expense 1,600  Credit Accumulated Depreciation Machinery 1,600 b) Debit Cash 20,000  Credit Machinery 20,000 A) Debit Depreciation Expense 1,600  Credit Accumulated Depreciation Machinery 1,600  b) Debit Cash 10,500 and and Accumulated Deprecation Machinery 10,000  Credit Machinery 20,000 and Gain on disposal of Machinery500  A) Debit Depreciation Expense 1,600  Credit Accumulated Depreciation Machinery 1,600  b) Debit Cash 10,500 and and Accumulated Deprecation Machinery 9,000  Credit Machinery 20,000 and Gain on disposal of Machinery500 A) Debit Depreciation Expense 1,600  Credit Accumulated Depreciation   Machinery 1,600 b) Debit Cash 5,200 and loss on Disposal of machinery 4,800 and Accumulated Deprecation  Machinery 10,000  Credit Machinery 20,000

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Ottawa Corporation owns machinery that cost $20,000 when purchased on July 1, 2016. Depreciation has been recorded at a rate of $2,400 per year, resulting

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