Asked by Billy Yeung on Apr 25, 2024
Verified
Journalize the following transactions for Pets R Us:
Mar. 5 Sold a truck for $10,000 that cost $15,000 and had an accumulated depreciation of $12,000.
Mar. 10 A machine costing $13,000 with accumulated depreciation of $10,500 was destroyed in a fire. No claim was filed.
May 15 Traded in a machine costing $25,000, with $19,000 of accumulated depreciation, for a new machine costing $32,000 with a trade-in allowance of$ 9,000.
Accumulated Depreciation
The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.
Trade-in Allowance
The amount credited to a buyer by a seller for the property or goods being part-exchanged.
- Acquire knowledge on how to prepare journal entries for the disposal of fixed assets and comprehend their impact on financial statements.
- Grasp the regulatory framework governing trade-ins of assets and its repercussions on the cost basis of the new asset.
Verified Answer
JC
Learning Objectives
- Acquire knowledge on how to prepare journal entries for the disposal of fixed assets and comprehend their impact on financial statements.
- Grasp the regulatory framework governing trade-ins of assets and its repercussions on the cost basis of the new asset.
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