Metlock ASA traded a used truck (cost €25,600, accumulated depreciation €23,040) for a small computer worth €4,320. Metlock also paid €640 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Computers Accumulated Depreciation-Trucks Trucks Cash Loss on Disposal of Trucks Debit 4320 23040 Credit 25600 640 1120
Metlock ASA traded a used truck (cost €25,600, accumulated depreciation €23,040) for a small computer worth €4,320. Metlock also paid €640 in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Computers Accumulated Depreciation-Trucks Trucks Cash Loss on Disposal of Trucks Debit 4320 23040 Credit 25600 640 1120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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D1.
Account
Transcribed Image Text:Metlock ASA traded a used truck (cost €25,600, accumulated depreciation €23,040) for a small computer worth €4,320. Metlock also
paid €640 in the transaction.
Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the
amounts.)
Account Titles and Explanation
Computers
Accumulated Depreciation-Trucks
Trucks
Cash
Loss on Disposal of Trucks
Debit
4320
23040
Credit
25600
640
1120
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