Reference no: EM132572512
Winningham Company sold the following two machines in 2019:
Machine A Machine B
Cost $ 92,000 $ 43,000
Purchase date July 1, 2015 Jan. 1, 2016
Useful life 8 years 8 years
Residual value $ 4,000 $ 3,000
Depreciation method Straight-line Double diminishing-balance
Date sold July 1, 2019 Aug. 1, 2019
Sales price (Cash) $ 37,000 $ 12,000
Instructions:
Question 1: Journalize all entries required to update depreciation and record the sales of the two assets in 2019.
NOTE: The company has recorded depreciation on the machines up to December 31, 2018.