In 2014 UraMin Co completed the following transactions involving delivery
In 2014, UraMin Co. completed the following transactions involving delivery trucks:
July 5 Traded-in an old truck and paid $25,600 in cash for furniture. The accounting records on July 5 showed the cost of the old truck at $36,000 and related accumulated depreciation of $6,000. The furniture was estimated to have a six-year life and a $6,268 trade-in value. The invoice for the exchange showed these items:
Price of the furniture (equal to its fair value)........................................................ $45,100
Trade-in allowance................................................................................................. (19,500)
Total paid in cash ................................................................................................... $25,600
Dec. 31 Recorded straight-line depreciation on the furniture (to nearest whole month).

Required
Prepare journal entries to record the transactions.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help