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bravata bravata
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7 years ago
Equipment costing $118,000 has accumulated depreciation of $92,000. The equipment is a trade-in for new equipment costing $187,000. If the trade-in value received for the old equipment is $30,000, the journal entry to record this transaction is to:
A) debit Equipment (New) for $187,000, debit Accumulated Depreciation – Equipment for $92,000, credit Equipment (Old) for $118,000 and credit Cash for $161,000.
B) debit Equipment (New) for $187,000, debit Accumulated Depreciation – Equipment for $92,000, credit Equipment (Old) for $118,000, credit Cash for $157,000, and credit Gain on Exchange of Assets for $4,000.
C) debit Equipment (New) for $187,000, debit Accumulated Depreciation – Equipment for $92,000, debit Loss on Exchange of Assets for $26,000, credit Equipment (Old) for $118,000 and credit Cash for $187,000.
D) debit Equipment (New) for $187,000, and credit Cash for $187,000.
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Financial Accounting

Financial Accounting


Edition: 3rd
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antonio_johnantonio_john
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Massachusetts Institute of Technology
-- Accounting

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