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.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.6: Buying Intangible Assets And Calculating Amortization Expense
Problem 1WT
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A knitting machine, which had cost $210,000 and had
Required:
1. Prepare the
| 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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