Spa Sources Corporation Purchased a Machine That Had an Original

Short Answer

Spa Sources Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000.The useful life was expected to be 8 years and straight-line depreciation is used.At the end of 2010,the book value of the machine was $35,000.Spa Sources sold the machine for $32,000 cash on October 1,2011.
Requirements:
A.Prepare the journal entry to record depreciation for 2011 up to the date of sale.
B.Prepare the journal entry to record the sale of the machine.