Question: I need to journalize this transaction. Can someone please help Traded in the cash register we purchased in January. Calculate the depreciation to date (
I need to journalize this transaction. Can someone please help
Traded in the cash register we purchased in January. Calculate the depreciation to date ( 3/12 of a year, zero residual value and 5 year life using straight line). We received $500 trade in for this cash register. We are buying new cash register with a list price of $1,000 by issuing a note for 10% interest. Use the GAAP method of accounting for the loss on the trade in. The new register (#2) will have no residual value and be depreciated over a 5 year life.
| 130.1 | Accumulated Depr./Paint Mixer | |||
| 131 | Paint Shaker | |||
| 131.1 | Accumulated Depr./Paint Shaker | |||
| 132 | Cash Register | |||
| 132.1 | Accumulated Depr./Cash Register | |||
| 133 | Cash Register | |||
| 133.1 | Accumulated Depr./Cash Register | |||
| 134 | Furniture | |||
| 134.1 | Accumulated Depr./Furniture | |||
| 135 | Fixtures | |||
| 135.1 | Accumulated Depr./Fixtures | |||
| ACCOUNT | Cash Register #1 | ACCOUNT NO. | 132 | ||||
| Balance | |||||||
| Date | Item | P.R. | Debit | Credit | Debit | Credit | |
| March | 1 | Balance | 550.00 | ||||
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