Answer:
Cash $4
Accumulated Depreciation $18
To Property & equipment $22
(Being the sale of the property and equipment is recorded)
Explanation:
The journal entry is shown below:
Cash $4
Accumulated Depreciation $18
To Property & equipment $22
(Being the sale of the property and equipment is recorded)
For recording this we debited the cash and accumulated depreciation as it increased the assets and reduced the accumulated depreciation balance and credited the property & equipment as it decreased the assets
The workings are as follows
For PPE
PPE Beginning Balance Beginning $642
Add: Purchases during the year $58
Less: PPE Ending Balance Ending ($678)
Cost of the sold equipment $22
For Accumulated depreciation
Beginning Accumulated Depreciation $360
Add: Depreciation expense 2018 $43
Less: Ending Accumulated Depreciation ($385)
Accumulated Depreciation left $18