Cosenza Ltd acquired a truck with a cost of $250 000, an estimated useful life of 6
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Cosenza Ltd acquired a truck with a cost of $250 000, an estimated useful life of 6 years and a residual value of $30 000. Sum-of-years-digits depreciation was used. Ignore GST.
Required
Prepare the journal entries for each of the following events:
1. Sell the tractor for cash of $120000 after 2 years of use.
2. Trade in the tractor for a $40000 allowance after 4 years on another tractor with a cash price of $275000.
3. Scrap the tractor after 5 years of use. The tractor was given to a scrap dealer who pays $2000 to remove it.
DealerA dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
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Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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