Question
Concord Farms Ltd. had the following transactions during the fiscal year ended December 31, 2021. 1. On May 1, a used tractor was sold at
Concord Farms Ltd. had the following transactions during the fiscal year ended December 31, 2021. 1. On May 1, a used tractor was sold at auction. The information concerning this transaction included: Original cost of the tractor $52,180 Carrying amount of tractor at date of sale 14,000 Cash proceeds obtained at sale 22,380 2. After the seeding season, on June 15, a plough, with an original cost of $6,310 and a carrying amount of $500, was discarded. 3. On September 1, a new plough was purchased for $7,990. 4. On December 30, a section of land was sold to a neighbouring farm called Clear Pastures Ltd. The original cost of the land was $40,830. To finance the purchase, Clear Pastures gave Concord a three-year promissory note in the amount of $70,830 which carries interest at 5%. 5. On December 31, depreciation was recorded on the farm equipment in the amount of $12,730.
Prepare the journal entries to record the transactions during the year.
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