NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five Years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, Assume the straight line depreciation method was used and that: It was sold for $ 10000 cash It was sold for $ 8000 cash a. b. It was traded in on a similar mixer (new) having a list price of $ 16500, с. a trade in allowance of $ 8000 was given and the balance was paid in cash.

NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five Years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, Assume the straight line depreciation method was used and that: It was sold for $ 10000 cash It was sold for $ 8000 cash a. b. It was traded in on a similar mixer (new) having a list price of $ 16500, с. a trade in allowance of $ 8000 was given and the balance was paid in cash.

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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