Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
On January 2,2023 , Direct Shoes Inc. disposed of a machine that cost $86,000 and had been depreciated $46,450. Present the journal entries to record
On January 2,2023 , Direct Shoes Inc. disposed of a machine that cost $86,000 and had been depreciated $46,450. Present the journal entries to record the disposal under each of the following unrelated assumptions: a. The machine was sold for $34,500cash. Journal entry worksheet The machine was traded in on new tools having a $121,000 cash price. A $42,000 trade-in allowance was received, and the balance as paid in cash. Since the tools have been customized, the fair values are not known. Journal entry worksheet The machine plus $70,000 was exchanged for a delivery van having a fair value of $106,000. Journal entry worksheet Note: Enter debits before credits. d. The machine was traded for vacant land adjacent to the shop to be used as a parking lot. The land had a fair value of $77,000, and Direct Shoes inc. paid $27,000 cash in addition to giving the seller the machine. Journal entry worksheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started