Quinn Company sells office equipment on July 31, 2014, for $21,860 cash. The off

Question

Quinn Company sells office equipment on July 31, 2014, for $21,860 cash. The office equipment originally cost $80,860 and as of January 1, 2014, had accumulated depreciation of $39,600. Depreciation for the first 7 months of 2014 is $4,790. Prepare the journal entries to (a) update depreciation to July 31, 2014, and (b) record the sale of the equipment.

I just need help finding the numbers that should go in the two red boxes!

2014d Quinn Company sells office equipment on July 31, 2014, for $21,860 cash. The office equipment originally cost $80,860 and as of January 1, 2014, had accumulated depreciation of $39,600. Depreciation for the first 7 months of 2014 is $4,790. Prepare the journal entries to (a) update depreciation to July 31, 2014, and (b) record the sale of the equipment. (Credit account titles are automatically indented when amount is entered Do not indent manually.) No. Account Titles and Explanation (a) Depreciation Expense Debit Credit Depreciation Espenric 4790 Accumulated Depreciati 4790 (b) Cash 21,860 Accumulated Depreciation 47168.33 Loss on Disposal of PlantA 7042 Equipment 80,860

Explanation / Answer

First Red Box:

Calculation of Accumulated depreciation Balance:

Accumulated depreciation as on 01/01/14 $39600

Add: Depreciation for the first 7 months of 2014 $4,790

Accumulated depreciation Balance as on date of sale = $44390

Second Red Box:

office equipment original cost $80,860

Less: Accumulated depreciation Balance as on date of sale $44390

Less: Sales value realised in Cash $21860

Loss on Sale of Plant = $14610

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