Complete in the General Journal

Jan 5. Purchased office equipment at a price of $5,000 FOB. The freight charge was $48; the installation charge was $200. 

Apr. 1 Sold warehouse equipment for $5,000 in cash. The equipment was purchased on January 3, 20X1, for $16,000. The equipment had a useful life of five years and a salvage value of $1,000. Depreciation was last recorded on December 31, 20X3.

 Jul. 1 Sold office equipment for $2,000 in cash. The equipment was purchased on July 3, 20X1 for $3,000. The equipment had a useful life of five years and a salvage value of $500. 

Jan 2. Traded in office equipment for new equipment that is similar. The list price of the new office equipment is $15,000. Paid $10,000 cash and received a trade-in allowance of $5,000 for the old equipment. The old equipment had been purchased on January 3, 20X1, for $12,000. The old equipment had an estimated useful life of five years and a salvage value of $2,000. Depreciation on the old equipment was last recorded on December 31, 20X4. (Income tax method)

 Jan. 4 Traded in warehouse equipment for now equipment that is similar. The list price of the new warehouse equipment is $25,000. Paid $19,000 cash and received a trade-in allowance of $6,000 for the old equipment. The old equipment had been purchased on January 4, 20X1, for $23,000. The old equipment had an estimated useful life of five years and a salvage value of $3,000. Depreciation on the old equipment was last recorded on December 31, 20X4. (Use the fair market method to record the trade-in.)

Answer rating: 100% (QA)

Jan 5 Office Equipment 5000 Freight Expense 48 Installation Expense 200 Cash 5248 To record the p... View the full answer