On January 1, 2016, old equipment that had a cost of $30,000 was exchanged for a new one. The old office equipment and $15,000 cash were given for the new equipment. Adjusting entries for depreciation have been recorded prior to disposal. The old equipment had $13,500 balance for accumulated depreciation on the date of the disposal. It is estimated that the fair value of the old office equipment on January 1, 2016 was $15,000. Instructions: Prepare the journal entry to record the disposal of plant assets on January 1, 2016. Date Ref Credit Account Title and Explanation Debit PROBLEM 17 On April 1, 2016, KAYNE Company decided to exchange an old bus that has a cost of $21,000 with an accumulated depreciation of $15,400 with a new one. The old bus and $19,600 cash were paid to get the new bus. At the date of the exchange, the fair value of the old bus was $7,000. Instructions: Prepare the journal entry to record the disposal of plant assets on April 1, 2016. Ref Debit Credit Date Account Title and Explanation On January 1, 2016, old equipment that had a cost of $30,000 was exchanged for a new one. The old office equipment and $15,000 cash were given for the new equipment. Adjusting entries for depreciation have been recorded prior to disposal. The old equipment had $13,500 balance for accumulated depreciation on the date of the disposal. It is estimated that the fair value of the old office equipment on January 1, 2016 was $15,000. Instructions: Prepare the journal entry to record the disposal of plant assets on January 1, 2016. Date Ref Credit Account Title and Explanation Debit PROBLEM 17 On April 1, 2016, KAYNE Company decided to exchange an old bus that has a cost of $21,000 with an accumulated depreciation of $15,400 with a new one. The old bus and $19,600 cash were paid to get the new bus. At the date of the exchange, the fair value of the old bus was $7,000. Instructions: Prepare the journal entry to record the disposal of plant assets on April 1, 2016. Ref Debit Credit Date Account Title and Explanation