Question

On May 31​, 2024​, Stone company discarded equipment costing $ 53,000. Accumulated Depreciation as of December ​31, 2023​, was $ 45,000. Assume annual depreciation on the equipment is $ 3,600. Prepare the journal entries needed for the May 31​, 2024​, depreciation expense and disposal of the equipment. Omit explanations. ​(Record debits​ first, then​ credits.)
Journalize the depreciation expense at May 31, 2024.

Answer 1

**Journal Entry for Depreciation Expense on May 31, 2024:**

```
Date Account Title Debit Credit
May 31, 2024 Depreciation Expense 3,600
Accumulated Depreciation 3,600
```

**Journal Entry for Disposal of the Equipment on May 31, 2024:**

```
Date Account Title Debit Credit
May 31, 2024 Accumulated Depreciation 49,600
Loss on Disposal of Equipment 3,400
Equipment 53,000
```