Required: Prepare the journal entries to record the disposal of the mixer at the end of second year,
Required: Prepare the journal entries to record the disposal of the mixer at the end of second year,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Financial accounting question
![Q 2. 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
а.
b.
It was sold for $ 8000 cash
It was traded in on a similar mixer ( new)
C.
having a list price of $ 16500,
a trade in allowance of $ 8000 was
given and the balance was paid in cash.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F805fbded-38f5-48c9-a13b-915000db40e5%2F2a594795-2ef4-49a9-8345-e425f91c2c31%2Flujzdnr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q 2. 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
а.
b.
It was sold for $ 8000 cash
It was traded in on a similar mixer ( new)
C.
having a list price of $ 16500,
a trade in allowance of $ 8000 was
given and the balance was paid in cash.
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