PROBLEM 16 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. Ref Debit Credit Account Title and Explanation Date Natural Resources, & Intangibles 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. Date Account Title and Explanation Ref Debit Credit