Trade In Of An Asset

Question

Feb 23, 2006, 12:56 PM

owens

New Member

Join Date: Feb 2006

Posts: 6

Trade In Of An Asset

On December 1, 2005, Cutting Edge Traded An Old Piece Of Equipment
For A Newer Model. The Following Information Pertains To This
Transaction:

Old Machine:
Original Cost 18,000
Accumulated Depreciation As Of 12/1/05 13,500

New Machine:
List Price 22,500
Cash Price Without Trade-in 21,000
Cash Paid With Trade-in 19,050

Can You Help Me Make The Journal Entry To Record The Purchase Of The New Machine And Also The Journal Entry If The Cash Paid Was 16,050?

Answers

Feb 23, 2006, 01:31 PM	#2

CaptainForest Finance & Accounting Expert Join Date: Nov 2005 Location: Canada Posts: 3,672	Dr. New Machine 21,000 (value w/o trade in) Dr. Acc. Amort - Old Machine 13,500 (given) Cr. Old Machine 18,000 (given) Cr. Cash 19,050 (given) Dr. Loss 2,550 The cash paid is 19,050 - as stated in your question: Cash Paid With Trade-in 19,050

Answer this Question Ask about Accounting

« Previous Thread | Next Thread »

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Similar Sponsors

Similar Threads
Question	Asker	Forum	Answers	Last Post
Trade School	southron_98	Academic Advising	2	Sep 17, 2006 11:07 AM
Asset Protection	fshay1	Other Money & Services	2	Aug 19, 2006 08:21 AM
je for disposing of asset	rblum	Finance & Accounting	3	Jul 16, 2006 08:43 PM
cost of an asset	student007	Finance & Accounting	1	Mar 4, 2006 05:07 PM
Trade off in birds	TWFM	Biology	0	Jan 5, 2006 07:47 AM



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!