Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Funkel's Forklifts trades in a forklift for $33,000 cash. The machine originally cost $90,000 and its carrying amount is $40,000. GST is payable on the

image text in transcribed

Funkel's Forklifts trades in a forklift for $33,000 cash. The machine originally cost $90,000 and its carrying amount is $40,000. GST is payable on the trade-in. What are the correct journal entries? Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $50,000; Debit Loss on sale; $10,000 Credit forklift $90,000; Credit GST $3,000 Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $40,000; Credit forklift $90,000; Credit GST $3,000; Credit Gain on sale $10,000 Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $40,000; Debit Loss on sale $10,000; Credit GST $3,000; Credit forklift $90,000 Debit Accounts Payable $33,000; Debit forklift $90,000; Credit Accumulated depreciation of forklift $50,000; Credit GST $3,000; Credit Gain on sale $10,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Japanese Management Accounting Today Japanese Management And International Studies Volume 2

Authors: Masanobu Kosuga, Yasuhiro Monden, Shufuku Hiraoka, Yoshiyuki Nagasaka, Noriko Hoshi

1st Edition

9812700811, 978-9812700810

More Books

Students also viewed these Accounting questions