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I need to journalize this transaction. Can someone please help Traded in the cash register we purchased in January. Calculate the depreciation to date (
I need to journalize this transaction. Can someone please help
Traded in the cash register we purchased in January. Calculate the depreciation to date ( 3/12 of a year, zero residual value and 5 year life using straight line). We received $500 trade in for this cash register. We are buying new cash register with a list price of $1,000 by issuing a note for 10% interest. Use the GAAP method of accounting for the loss on the trade in. The new register (#2) will have no residual value and be depreciated over a 5 year life.
130.1 | Accumulated Depr./Paint Mixer | |||
131 | Paint Shaker | |||
131.1 | Accumulated Depr./Paint Shaker | |||
132 | Cash Register | |||
132.1 | Accumulated Depr./Cash Register | |||
133 | Cash Register | |||
133.1 | Accumulated Depr./Cash Register | |||
134 | Furniture | |||
134.1 | Accumulated Depr./Furniture | |||
135 | Fixtures | |||
135.1 | Accumulated Depr./Fixtures | |||
ACCOUNT | Cash Register #1 | ACCOUNT NO. | 132 | ||||
Balance | |||||||
Date | Item | P.R. | Debit | Credit | Debit | Credit | |
March | 1 | Balance | 550.00 | ||||
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