Help Journalizing Straight Line Depreciation Accounting?

Question

December 12th: Sold old sore equipment for $320 cash. The equipment originally cost $1,025 and depreciation to September 30 of this year (the end of the third quarter) totals $820. The asset depreciates on a straight line basis rate at $20 per month and depreciation is calculated to the nearest month (two entries required).

I've been trying to get this for a while now, but cannot seem to arrive at the correct entry.

Thanks!

Thanks to fivestring46 for answering my last question! ;-)

Answer 1

If the equipment has been depreciated up to Sept, you need to depreciate it for 2 more months, Oct and Nov.
Dr Depn expense 20
Cr Accumulated depn 20
(being depn for Oct)

Dr Depn exp. 20
Cr Accd depn 20
(being depn for Nov)

After the above, the accd depn a/c balance will be $820 + $20 +$20 = $860 and the net book value will be $1,025 - $860 = $165.

Upon disposal, your entry:
Dr Cash 320
Dr Accd depn 860
Cr Equipment at cost 1,025
Cr Gain on disposal 155