(1) Machinery acquired at a cost of $82,500 and on which there is accumulated depreciation of $60,000 (including any partial year) is exchanged for similar machinery. For financial reporting purposes, present the journal entries for each of the following:
(A) Price of new equipment is $105,000, trade-in allowance on old equipment is 19,000; balance paid in cash. Journalize the entries.
(B) Price of new equipment is $105,000, trade-in allowance on old equipment is 24,300; balance paid in cash. Journalize the entries.
(2) Equipment purchased for $48,200, with accumulated depreciation to date of $36,100, is sold for $15,000:
(A) Journalize the entry to record the sale of the asset.
(B) Assuming equipment was sold for $9,800, journalize the entry to record the sale.
(3) Machinery acquired at a cost of $76,900 and on which there is accumulated depreciation of $30,000 (including any partial year) is exchanged for similar machinery. For financial reporting purposes, present the journal entries for each of the following:
(A) Price of new equipment is $95,000, trade-in allowance on old equipment is 39,400; balance paid in cash. Journalize the entries.
(B) Price of new equipment is $95,000, trade-in allowance on old equipment is 47,500; balance paid in cash. Journalize the entries.