Tires Outlet purchases the following used items at an auction for $32,000 cash: a drill press, a
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Question:
Tires Outlet purchases the following used items at an auction for $32,000 cash: a drill press, a lathe, and a heavy-duty air compressor. The equipment is in excellent condition except for the electric motor on the lathe, which will cost $720 to replace with a new motor. Tires Outlet determines that selling prices for the used items are as follows: drill press, $6,720; lathe with an operational motor, $19,200; and air compressor, $8,400.
Prepare the entry to record
(a) acquisition of the equipment and
(b) replacement of the motor.
Expert Answer:
a Journal Entry Date Description Debit Credit Equipment Drill Press 6266 Equi... View the full answer
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