Chapter 3, Problem 13P

Using the chart of accounts in Figure 2-1, determine the changes to the balance sheet, income statement, job cost ledger, and equipment ledger as the result of purchasing a new loader (Loader 3) to replace an existing loader (Loader 2). The new loader costs $115,200. The new loader will be paid for by trading in the existing loader for a credit of $15,200 and the remaining $100,000 will be financed through the dealership. The existing loader was purchased for $95,000 and $83,230 of depreciation had been taken.