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Prepare the journal entries to record the following transactions for Ogleby Company which has a calendar year end and uses the straight-line method of depreciation

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Prepare the journal entries to record the following transactions for Ogleby Company which has a calendar year end and uses the straight-line method of depreciation (a) Your Answer Correct Answer Your answer is correct On September 30, 2018, the company exchanged old delivery equipment and $36,000 for new delivery equipment. The old delivery equipment was purchased on January 1, 2016, for $126,000 and was estimated to have a $18,000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31, 2017. It is estimated that the fair value of the old delivery equipment is $54,000 on September 30, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit Date Account Titles and Explanation eptember 10.2018 Depreciation Expense 1200 Sate Account Titles and Explanation Debit Credit eptember 10, 2018 Depreciation Expense 16200 Accumulated Depreciation Equipment 16200 (To record depreciation expense for the first 9 months of 2017) eptember 10, 2018 Equipment 90000 Accumulated Depreciation Equipment 59400 Loss on Disposal of Plant Assets 12600 Equipment 126000 Cash 36000 (To record exchange of old delivery equipment for new delivery equipment at a loss) (D) On June 30, 2018, the company exchanged old office equipment and $40,000 for new office equipment. The old office equipment originally cost $80,000 and had accumulated depreciation to the date of disposal of $35.000. It is estimated that the fair market value of the old office equipment on June 30 was $60,000. The transaction has commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit June 30 2018 Equipment 100000 Accumulated Depreciation Buildings 350000 Equipment Cash

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