On October 1, Bentley Delivery Services acquired a new truck with a list price (fair market value) of $74,390. Bentley Delivery received a trade-in allowance (fair market value) of $22,090 on an old truck of similar type and paid cash of $52,300. The following information about the old truck is obtained from the account in the equipment ledger: cost, $56,200; accumulated depreciation on December 31, the end of the preceding fiscal year, $35,040; annual depreciation, $8,760.

Required:

Assuming that the exchange has commercial substance, journalize the entries to record (a) the current depreciation of the old truck to the date of trade-in and (b) the transaction on October 1. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Journal

a. Journalize the entry on October 1 to record the current depreciation of the old truck to the date of trade-in. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

b. Journalize the entry to record the transaction on October 1. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

PAGE 1 line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. Journalize the entry to record the transaction on October 1. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered