Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selected transactions of the Harrel Company are listed below. The company uses the straight-line method of depreciation. 2019 Jan. 5 Purchased office equipment at a

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Selected transactions of the Harrel Company are listed below. The company uses the straight-line method of depreciation. 2019 Jan. 5 Purchased office equipment at a price of $14,000 FOB. The freight charge was $238; the installation charge was $300. April 1 Sold warehouse equipment for $13,000 in cash. The equipment was purchased on January 3, 2016, for $37,000. The equipment has a useful life of five years and a salvage value of $2,000. Depreciation was last recorded on December 31, 2018. July 1 Sold office equipment for $4,400 in cash. The equipment was purchased on July 3, 2016, for $4,500. The equipment has a useful life of five years and a salvage value of $400. Depreciation was last recorded on December 31, 2018. 2020 Jan. 2 Traded in office equipment for new equipment that is similar. The list price of the new office equipment is $34,000. Paid $30,000 cash and received a trade-in allowance of $4,000 for the old equipment. The old equipment had been purchased on January 3, 2016, for $28,000. The old equipment had an estimated useful life of four years and a salvage value of $2,000. Depreciation on the old equipment was last recorded on December 31, 2019. (Use the income tax method to record the trade-in. Jan. 4 Traded in warehouse equipment for new equipment that is similar. The list price of the new warehouse equipment is $40,000. Paid $38,000 cash and received a trade-in allowance of $2,000 for the old equipment. The old equipment had been purchased on January 4, 2016, for $38,000. The old equipment had an estimated useful life of four years and a salvage value of $3,000. Depreciation on the old equipment was last recorded on December 31, 2020. (Use the fair market value method to record the trade-in.) Prepare the entries in general journal form to record these transactions. (Do not round intermediate calculations. Use accoun designated as 'New' or 'Old' only when there is an exchange of assets. Do not use these accounts when recording deprecie recording the sale of an asset.) View transaction list View transaction list Journal entry worksheet ecoraing the sale of an asset.) View transaction list Journal entry worksheet iew transaction list Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones

11th edition

978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139

More Books

Students also viewed these Accounting questions