Accounting: General Journal.
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Berman Company sold equipment on June 30, 2005 for $40,000. The equipment
had cost $105,000 and had $60,000 of accumulated depreciation as of January 1,
2005. Depreciation for the first 6 months of 2005 was $6,000.
Prepare the journal entry to record the sale of the equipment.
Account Title Debit Credit
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
56. Neal and Company originally purchased a dump truck for $36,000. The truck had
a 10-year useful life, and the accumulated depreciation was $30,000 when they
sold the truck for $4,000.
Prepare the journal entry to record the sale of the truck.
Account Title Debit Credit
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
57. Presented below are two independent transactions.
1. Global Company exchanged old trucks (cost $64,000 less $22,000
accumulated depreciation) plus cash of $17,000 for new trucks. The old
trucks had a fair market value of $38,000.
2. Rijo Inc. trades its used machine (cost $12,000 less $4,000 accumulated
depreciation) for a new machine. In addition to exchanging the old
machine (which had a fair market value of $9,000) Rijo also paid cash of
$2,000.
Instructions
(a) Prepare the entry to record the exchange of similar assets by Global Company.
(b) Prepare the entry to record the exchange of similar assets by Rijo Inc.
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(a) Account Title Dr. Cr.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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(b) Account Title Dr. Cr.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
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Solution Summary
The problem deals with journalizing a set of entries.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
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