Waterway Corporation owns machinery that cost $21,200 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $2,544 per year, resulting in a balance in accumulated depreciation of $8,904 at December 31, 2020. The machinery is sold on September 1, 2021, for $11,130. Prepare journal entries to (a) update depreciation for 2021 and (b) record the sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

No.	Account Titles and Explanation	Debit	Credit
(a)	enter an account title to record depreciation for 2021	enter a debit amount	enter a credit amount
	enter an account title to record depreciation for 2021	enter a debit amount	enter a credit amount
(b)	enter an account title to record sale of the machinery	enter a debit amount	enter a credit amount
	enter an account title to record sale of the machinery	enter a debit amount	enter a credit amount
	enter an account title to record sale of the machinery	enter a debit amount	enter a credit amount
	enter an account title to record sale of the machinery	enter a debit amount	enter a credit amount

List of Accounts

• Accounts Payable
• Accumulated Depreciation-Buildings
• Accumulated Depreciation-Equipment
• Accumulated Depreciation-Machinery
• Accumulated Depreciation-Trucks
• Buildings
• Cash
• Computers
• Common Stock
• Contribution Expense
• Contribution Revenue
• Cost of Goods Sold
• Depreciation Expense
• Direct Labor
• Discount on Notes Payable
• Equipment
• Factory Overhead
• Forklift
• Furniture
• Gain on Disposal of Buildings
• Gain on Disposal of Equipment
• Gain on Disposal of Machinery
• Gain on Disposal of Trucks
• Gain on Disposal of Plant Assets
• Insurance Expense
• Interest Expense
• Interest Payable
• Interest Revenue
• Inventory
• Land
• Land Improvements
• Loss on Disposal of Buildings
• Loss on Disposal of Equipment
• Loss on Disposal of Machinery
• Loss on Disposal of Trucks
• Machinery
• Maintenance and Repairs Expense
• Materials
• No Entry
• Notes Payable
• Organization Expense
• Paid-in Capital in Excess of Par - Common Stock
• Prepaid Insurance
• Retained Earnings
• Salaries and Wages Expense
• Sales Revenue
• Trading Securities
• Trucks