A knitting machine, which had cost $210,000 and had accumulated depreciation of $147,000, was traded for a new knitting machine with a fair market value of $235,000. The old knitting machine and $180,000 in cash were given for the new knitting machine. Required: 1. Prepare the journal entry to record the exchange of these similar assets. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Dec. 31 1 2 2 3 3 4 4 5 5 2. Assume a $63,000 trade-in allowance for the old knitting machine. Prepare the journal entry to record the exchange. If an amount box does not require an entry, leave it blank.
A knitting machine, which had cost $210,000 and had accumulated depreciation of $147,000, was traded for a new knitting machine with a fair market value of $235,000. The old knitting machine and $180,000 in cash were given for the new knitting machine. Required: 1. Prepare the journal entry to record the exchange of these similar assets. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 Dec. 31 1 2 2 3 3 4 4 5 5 2. Assume a $63,000 trade-in allowance for the old knitting machine. Prepare the journal entry to record the exchange. If an amount box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A knitting machine, which had cost $210,000 and had
Required:
1. Prepare the journal entry to record the exchange of these similar assets. If an amount box does not require an entry, leave it blank.
Page: 1| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Dec. 31 | 1 | ||||
| 2 | 2 | |||||
| 3 | 3 | |||||
| 4 | 4 | |||||
| 5 | 5 |
2. Assume a $63,000 trade-in allowance for the old knitting machine. Prepare the journal entry to record the exchange. If an amount box does not require an entry, leave it blank.
Page: 1| DATE | DESCRIPTION | POST. REF. |
DEBIT | CREDIT | ||
|---|---|---|---|---|---|---|
| 1 | Dec. 31 | 1 | ||||
| 2 | 2 | |||||
| 3 | 3 | |||||
| 4 | 4 |
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