Antone Company sells office equipment on July 31, 2017, for $21,000 cash. The office equipment originally cost $72,000 and as of January 1, 2017, had accumulated depreciation of $42,000. Depreciation for the first 7 months of 2017 is $4,600. Prepare a tabular summary to (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment.

(a) update depreciation to July 31, 2017

Depreciation - Profit and Loss $4,600 (debit)

Accumulated Depreciation - Statement of Financial Position $4,600 (credit)

(b) record the sale of the equipment

Cash $21,000 (debit)

Accumulated Depreciation $ 46,600 (debit)

Loss on Sale of Equipment $4,400 (debit)

Office Equipment $72,000 (credit)

Explanation:

(a) update depreciation to July 31, 2017

Recognise an Expense - Depreciation in Income Statement

(b) record the sale of the equipment

De-recognise the Office Equipment at Cost

De-recognise the Total Accumulated depreciation of equipment to date

Recognise the Cash asset received at Sale of Office Equipment

Recognise the Loss arising from Sale of Equipment in Income Statement

answer; (b) insider trading;

by knowing conditionality

explanation: