Q 2. NC purchased a cement mixer for $ 14500. The mixer is expected to have...

Transcribed Image Text:

Q 2. NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, assume the straight line depreciation method was used and that: It was sold for $ 10000 cash а. b. It was sold for $ 8000 cash It was traded in on a similar mixer ( new) C. having a list price of S 16500, a trade in allowance of $ 8000 was given and the balance was paid in cash. Q 2. NC purchased a cement mixer for $ 14500. The mixer is expected to have a useful life of five years and a residual value of $ 1000 at the end of that time. Required: Prepare the journal entries to record the disposal of the mixer at the end of second year, assume the straight line depreciation method was used and that: It was sold for $ 10000 cash а. b. It was sold for $ 8000 cash It was traded in on a similar mixer ( new) C. having a list price of S 16500, a trade in allowance of $ 8000 was given and the balance was paid in cash.

Answer rating: 100% (QA)

a Cash 10000 Accumulated Depreciation 5400 Cemen... View the full answer