Name For 19 & 20, the following accounts could be used only once, more than once
ID: 2553204 • Letter: N
Question
Name For 19 & 20, the following accounts could be used only once, more than once, or not at all: Accounts Receivable Depletion Expense Notes Payable Notes Receivable Accumulated Gain on Disposal of Fixed Assets Patents Goodwil Depreciation Equipment Cash Loss on Disposal of Fixed Assets Amortization Expense 19. Write the journal entry for the following: Jan. 1. Traded in equipment costing $20,500, with accumulated depreciation of $18,500, for similar e and issued a note for the balance. 20. Write the journal entry for the following: Sold for $6,000 cash, equipment costing $27,500 with accumulated depreciation of $25,000.Explanation / Answer
(19).
Date
Accounts Title & Explanation
Debit
Credit
Jan. 1
Equipment
$60000
Accumulated Depreciation
$18500
Equipment
$20500
Note Payable ($60000 – $5000)
$55000
Gain on Disposal of Fixed Assets
$3000
(For recording trading of equipment)
Working Note;
Gain on disposal of fixed assets will be calculated as follow;
($60000 + $18500 – $20500 – $55000) = $3000
(20).
Date
Accounts Title & Explanation
Debit
Credit
Cash
$6000
Accumulated Depreciation
$25000
Equipment
$27500
Gain on Disposal of Fixed Assets
$3500
(For recording trading of equipment)
Working Note;
Gain on disposal of fixed assets will be calculated as follow;
$6000 – ($27500 - $25000) = $3500
Date
Accounts Title & Explanation
Debit
Credit
Jan. 1
Equipment
$60000
Accumulated Depreciation
$18500
Equipment
$20500
Note Payable ($60000 – $5000)
$55000
Gain on Disposal of Fixed Assets
$3000
(For recording trading of equipment)
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