In 2020, Staged Home Ltd. completed the following transactions involving delivery trucks:

July

5

Traded in an old truck and paid $30,600 in cash for furniture. The accounting records on July 5 showed the cost of the old truck at $63,000 and related accumulated depreciation of $10,500. The furniture was estimated to have a six-year life and a $13,468trade-in value. The invoice for the exchange showed these items:

Price of the furniture (equal to its fair value)	$	63,100
Trade-in allowance		(32,500	)
Total paid in cash	$	30,600

Dec.

31

Recorded straight-line depreciation on the furniture (to nearest whole month).

Required:
Prepare journal entries to record the transactions.

Answer rating: 100% (QA)

Account Titles and Explanation Debit Credit Furniture 6310000 Accumulated Depr... View the full answer