A company purchased and installed machinery on January 1 at a total cost of $93,000.Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value.The machinery was disposed of on July 1 of year four.The company uses the calendar year.
1.Prepare the general journal entry to update depreciation to July 1 in year four.
2.Prepare the general journal entry to record the sale of the machine for $27,000 cash.

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The Answer of A company purchased and installed machinery on January 1 at a total cost of $93,000.Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value.The machinery was disposed of on July 1 of year four.The company uses the calendar year.
1.Prepare the general journal entry to update depreciation to July 1 in year four.
2.Prepare the general journal entry to record the sale of the machine for $27,000 cash.

A Company Purchased and Installed Machinery on January 1 at a Total