Question
Question 4 (20 points) On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight years and an estimated residual
Question 4 (20 points)
On July 1, 2016, Alpha Company purchased for $72,000, equipment having a service life of eight years and an estimated residual value of $6,000. Alpha has recorded depreciation of the equipment using the double-declining balance method. On December 31, 2018, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $32,500. The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2018.
| DATE | ACCOUNTS | DEBIT | CREDIT |
| 12/31/2018 |
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| 12/31/2018 |
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Auditing
Authors: Karla M. Johnstone, Audrey A. Gramling, Larry E. Rittenberg
8th International Edition
0538477660, 978-0538477666
