Whispering corporation owns machinery that cost $20,800 when purchased on july 1, 2014. depreciation has been recorded at a rate of $2,496 per year, resulting in a balance in accumulated depreciation of $8,736 at december 31, 2017. the machinery is sold on september 1, 2018, for $10,920. prepare journal entries to (a) update depreciation for 2018 and (b) record the sale. (credit account titles are automatically indented when amount is entered. do not indent manually. if no entry is required, select "no entry" for the account titles and enter 0 for the amounts.)

depreciation expense 1,664 debit

   accumlated depreciation   1,664 credit

-- to record depreication from Jan 1st to September 1 --

cash                                      10,920 debit

accumulated depreciation  10,400 debit

            machinery                            20,800 credit

           gain at disposal                         520  credit

--to record sale of equipment --

Explanation:

We calculate the depreciation from December 31th 2017 to September 1st 2018

2,496 x 8/12 = 1,664

this will be the depreciation for the year up to sale date.

accumulated depreciation:  10,400

sale:

10,920

book value

20,800 - 10,400 = 10,400

result at dispossal: 10,920 - 10,400 = 520

answer; monopolistic competition;