18.

Entries for Trade of Fixed Asset

On October 1, Bentley Delivery Services acquired a new truck with a list price (fair market value) of $143,000. Bentley Delivery received a trade-in allowance (fair market value) of $21,900 on an old truck of similar type and paid cash of $121,100. The following information about the old truck is obtained from the account in the equipment ledger: cost, $96,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $64,000; annual depreciation, $16,000. Assuming that the exchange has commercial substance.

a. Journalize the entry to record the current depreciation of the old truck to the date of trade-in. If an amount box does not require an entry, leave it blank.

	Depreciation Expense-Trucks	fill in the blank 2d0bf9fbbfb1062_2	fill in the blank 2d0bf9fbbfb1062_3
	Accumulated Depreciation-Trucks	fill in the blank 2d0bf9fbbfb1062_5	fill in the blank 2d0bf9fbbfb1062_6

Feedback

Remember that the amount given for the depreciation on the fixed asset is the annual amount.

b. Journalize the entry to record the transaction on October 1. If an amount box does not require an entry, leave it blank.

	Accumulated Depreciation-Trucks	fill in the blank be03d9025047fe6_2	fill in the blank be03d9025047fe6_3
	Trucks	fill in the blank be03d9025047fe6_5	fill in the blank be03d9025047fe6_6
	Trucks	fill in the blank be03d9025047fe6_8	fill in the blank be03d9025047fe6_9
	Cash	fill in the blank be03d9025047fe6_11	fill in the blank be03d9025047fe6_12
	Gain on Exchange of Trucks	fill in the blank be03d9025047fe6_14	fill in the blank be03d9025047fe6_15