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Question - Blossom Limited sells equipment on September 30, 2021, for $37,870 cash. The equipment originally cost $156,280 when purchased on January 1, 2019. It has an estimated residual value of $4,380 and a useful life of five years. Depreciation is recorded annually and was last recorded on December 31, 2020, the company's year end.
Required -
1. Record debit side accounts first followed by credit side accounts.
2. Prepare the journal entry to update depreciation using the straight-line method to September 30, 2021.
3. Prepare the journal entry to record the sale of the equipment.
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