On January 2, 2015, Joshon Hardware Company traded an old delivery truck to a dealer for a
Question:
On January 2, 2015, Joshon Hardware Company traded an old delivery truck to a dealer for a newer model. Data relative to the old and new trucks follow:
Old truck:
Original cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,750
Accumulated depreciation as of January 2, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,000
New truck:
List price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000
Cash price without trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 23,100
Cash paid with trade-in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 20,900
1. Give the journal entries on Joshon's books to record the purchase of the new truck.
2. Give the journal entries on Joshon's books if the cash paid was $18,000 and that amount is considered "large."
DealerA dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
Step by Step Answer:
1 Truck new 23100 Accumulated DepreciationTruck 19000 Loss on Trade ln of Tru...View the full answer
