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On January 1, 2016, Horton Inc. sells a machine for $23,000. The machine was originally purchased on January 1, 2014 for $40,000. The machine was estimated to have a useful life of 5 years and no residual value. Horton uses straight-line depreciation.
a. Prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
You are to prepare the missing adjusting entry. Please indicate DR (debit ) or CR (credit) to the left of the account title, and place a comma between the account title and the amount of the adjustment.
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