Astrom Ltd. purchased a piece of equipment on May 12, 2020, for $53,400. At the time, management determined that the
equipment would have a 4-year useful life and a residual value of $4,200. Astrom uses the straight-line depreciation method for
its equipment, and the company has a December 31 year end. Also assume that Astrom sold the equipment on September 25,
2022, for $21,475. (Credit account titles are automatically indented when the 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.)
Date
Account Titles and Explanation
Debit
Credit
May 12, 2020
Equipment
53,400
Cash
53,4
Dec. 31, 2020
Depreciation Expense
12,300
Accumulated Depreciation - Equipment
12,3
Dec. 31, 2021
Depreciation Expense
12,300
Accumulated Depreciation - Equipment
12.3
Sept. 25, 2022
Depreciation Expense
12,300
Accumulated Depreciation - Equipment
12.3
(To record depreciation expense)
t. 25, 2022
Cash
21,475
Accumulated Depreciation - Equipment
36,900
Loss on Disposal
4975
Equipment
53,4
(To record sale of equipment)