XEXERCISE 11-14On July 1, Klaus Co. acquired a new computer with a list price of $130,000. Klaus recerve itrade-in allowance of $20,000 on an old computer of a similar type, paid cash of $20,00gave a series of five notes payable for the remainder. The following information about the alcomputer is obtained from the account in the office equipment ledger: cóst, $82,500; acumlated depreciation on December 31, the end of the preceding fiscal year, $62,500; ánnuapreciation, $15,000. Journalize the entries to record: (a) the current depreciation of the ucomputer to the date of trade-in, (b) the transaction on July 1 for financial reporting purpoENTRIES FOR GAIN ONTRADE OF PLANT ASSETObjective 7

Trade-in allowance is given to reduce the sale price of the asset.

EXERCISE 11-14 ENTRIES FOR GAIN ON TRADE OF PLANT ASSET On July 1, Klaus Co. acquired a new computer with a list price of $130,000, Klaus reverya trade-in allowance of $20,000 on an old computer of a similar type, paid cash of $20,00, gave a series of five notes payable for the remainder. The following information abouk th t computer is obtained from the account in the office equipment ledger: cost, $82,500; acmng lated depreciation on December 31, the end of the preceding fiscal year, $62,500; ânnual preciation, $15,000. Journalize the entries to record: (a) the current depreciatiõn of th ohi computer to the date of trade-in, (b) the transaction on July 1 for financial reporting pupo Objective 7

EXERCISE 11-14 ENTRIES FOR GAIN ON TRADE OF PLANT ASSET On July 1, Klaus Co. acquired a new computer with a list price of $130,000, Klaus reverya trade-in allowance of $20,000 on an old computer of a similar type, paid cash of $20,00, gave a series of five notes payable for the remainder. The following information abouk th t computer is obtained from the account in the office equipment ledger: cost, $82,500; acmng lated depreciation on December 31, the end of the preceding fiscal year, $62,500; ânnual preciation, $15,000. Journalize the entries to record: (a) the current depreciatiõn of th ohi computer to the date of trade-in, (b) the transaction on July 1 for financial reporting pupo Objective 7

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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Question 5
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