Question

Ivanhoe Company sells office equipment on July 31, 2022, for $22.410 cash. The office equipment originally cost $81,920 and as of January 1, 2022, ha m ed depreciation of $37,600 Depreciation for the first 7 months of 2022 is $4,580. Prepare the journal entries to (a) update depreciation to July 31, 2022, and record the sale of the equipment. (Cred 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 for the amounts) No. Account Titles and Explanation Debit Credit estions Open Show Work

Answer 1

Date	Account and explanation	Debit	Credit
July 31,2022	Depreciation expenses	$4,580
	Accumulated Depreciation-Office equipment		$4,580
	(to depreciation charged for 7 months of 2022)
July 31,2022	Cash	$22,410
	Accumulated Depreciation-Office equipment	$42,180
	Loss on sale of equipment	$17,330
	Office equipment		$81,920
	(To sale of equipment with loss recognized)
	Depeciation under Double declining balance method:
	Depreciation rate =1 / 4 years =25%*2 =50%
	Depreciation for Year 1 =$39,700*50% =$19,850
	Book value at end of 1st year =$39,700 - $19,850 =$19,850
	Depreciation for Year 2 =$19,850*50% =$9,925