On September 30, 2018, the Company exchanged old delivery equipment and RM24,000 cash for new delivery equipment. The old delivery equipment was purchased on January 1, 2016 for RM84,000 and was estimated to have a RM12,000 residual value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31, 2017. It is estimated that the fair value of the old delivery equipment is RM39,000 on September 30, 2018 Required: Prepare the journal entries to record the above transactions for the Company which has a calendar year end and uses the straight-line method of depreciation. Show all workings.

On September 30, 2018, the Company exchanged old delivery equipment and RM24,000 cash for new delivery equipment. The old delivery equipment was purchased on January 1, 2016 for RM84,000 and was estimated to have a RM12,000 residual value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31, 2017. It is estimated that the fair value of the old delivery equipment is RM39,000 on September 30, 2018 Required: Prepare the journal entries to record the above transactions for the Company which has a calendar year end and uses the straight-line method of depreciation. Show all workings.

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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