In 2023, Staged Home Ltd. completed the following transactions involving delivery trucks:July 5 Traded in an old truck and paid $30,600 in cash for furniture. The accounting records on July 5 showed the cost of the oldtruck at $63,000 and related accumulated depreciation of $10,500. The furniture was estimated to have a six-year life and a$13,468 trade-in value. The invoice for the exchange showed these items:Price of the furniture (equal to itsfair value)Trade-in allowanceTotal paid in cashDec. 31 Recorded straight-line depreciation on the furniture (to nearest whole month).Required:Prepare journal entries to record the transactions.View transaction listJournal entry worksheet<1$ 63,100(32,500)$ 30,6002Record exchange of old truck for furniture.

Required 1JournalDate Particulars Debit Credit 5.07.2023Furniture$63100Accumulated depreciation -old…

Answered: Dec. 31 Recorded straight-line…

Dec. 31 Recorded straight-line depreciation on the furniture (to nearest whole month). Required: Prepare journal entries to record the transactions.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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