The transactions listed below occurred at Jarred Company during 2019: DATE TRANSACTIONS Mar. 25 Exchanged a printer (office Equipment) that had an original cost of $6,140 when purchased on January 4, 2017. The useful life of the old asset was originally estimated at five years and the salvage value at $240. The new printer had a price and market value of $10,240. Jarred gave up the old machine and paid $5,120 cash. The new printer is estimated to have a useful life of five years and a salvage value of $640. July 19 Exchanged a truck (Vehicles) for a new one that had a sales price, and fair value, of $43,600. Received a trade-in allowance of $10,980 on the old truck and paid cash of $32,700. The old truck had been purchased for $35,720 on May 27, 2016, three years earlier. The Life of the old truck was originally estimated at four years and the salvage value at $6,200. The life of the new truck is estimated to be five years and it is estimated to have a salvage value of $9,200. Aug. 18 Sold a truck that was purchased on January 5, 2017, for an original purchase price of $42,440. It had an estimated life of four years and an estimated salvage value of $7,400. Sales price is as indicated in Instructions, below. Required: Note: In following these instructions, assume that straight-line depreciation is used and that depreciation was last recorded on December 31, 2018. (Note: The presentation in the text related to the exchanges of assets has been superseded by FAS 153. Under FAS 153, gains and losses on the exchange of assets that have commercial substance are recognized in full. The deferral of gains (by reducing the basis in the new asset) only pertains to assets that lack commercial substance.) 1. Prepare the journal entries to record the two exchange transactions. 2. Record the journal entries for the truck sold on August 18, 2019. Analyze: What was the book value of the truck sold on August 18? Journal entry worksheet View transaction llat Journal entry worksheet 1 2 4 Record depreciation on the truck. Note: Enter debits before credits General Journal Debit Credit Date Jul 19, 2019 Record entry Clear entry View general Journal 12 3 4 Record the exchange for the new truck. Note: Enter debits before credits Data General Journal Dobit Credit Jul 19, 2019 Required 1 Required 2 Analyze Record the journal entries for the truck sold on August 18, 2019. (Round your answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 1 2 3 Record the depreciation for the year for the truck sold on August 18. Note: Enter debits before credits. Date General Journal Debit Credit Aug 18, 2019 Juunai CiLry worsieet 3 1 2 3 Share Record the sale of the truck at a sales price of $20,500. Note: Enter debits before credits. General Journal Debit Credit Date Aug 18, 2019 Record entry Clear entry View general journal Journal entry worksheet
