During 2016 Zora Company completed the following transactions:

Record the transactions in the journal of Zora

Company. (Record debits first, then credits.)

Jan. 1: Traded in old office equipment with book value of $60,000 (cost of $ 129,000 and accumulated depreciation of $ 69,000)

for new equipment. Zora also paid $ 75,000 in cash. Fair value of new equipment is $ 142,000.

Assume the exchange had commercial substance. (Record a single compound journal entry.)

Date			Accounts and Explanation	Debit	Credit
Jan. 1

Apr. 1: Sold equipment that cost $ 48,000 (accumulated depreciation of $ 39,000 through December 31 of the preceding year).

Zora received $ 6,100 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0.Before we record the sale of the equipment, we must record depreciation on the equipment through April 1, 2016.

Date			Accounts and Explanation	Debit	Credit
Apr. 1

Now record the sale of the equipment on April 1.

Date			Accounts and Explanation	Debit	Credit
Apr. 1

Dec. 31: Recorded depreciation on the office equipment. Office equipment is depreciated using the double-declining-balance method over

four years with a $ 4,000 residual value.

Date			Accounts and Explanation	Debit	Credit
Dec. 31