Answer:
(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
