Question: On january 2 2011 bering co disposes of a machine

On January 2, 2011, Bering Co. disposes of a machine costing $52,400 with accumulated depreciation of $28,227. Prepare the entries to record the disposal under each of the following separate assumptions.
1. Machine is sold for $20,274 cash.
2. Machine is traded in on a newer machine having a $68,900 cash price. A $24,953 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange lacks commercial substance.
3. Machine is traded in on a newer machine having a $68,900 cash price. An $18,714 trade-in allowance is received, and the balance is paid in cash. Assume the asset exchange has commercial substance.

View Solution:


Sale on SolutionInn
Sales0
Views120
Comments
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000