During 2016 Sukiora Company Completed The Following Transactions Click The Icon To View Transactions Record The Tra 1 (49.46 KiB) Viewed 36 times
During 2016, Sukiora Company completed the following transactions: (Click the icon to view transactions.) Record the transactions in the journal of Sukiora Company. (Record debits first, then credits. Select the explanation on the last line of the joumal entry table.) Jan. 1: Traded in old office equipment with book value of $55.000 (cost of $129.000 and accumulated depreciation of $74.000) for new equipment. Sukiora also paid $60.000 in cash. Fair value of new equipment is $117.000. Assume the exchange had commercial substance. (Record a single compound Joumal entry.) Date Accounts and Explanation Debit Credit Jan, 1 117000 Office Equipment (new) Accumulated Depreciation Office Equipment Office Equipment (old) 74000 Cash 129000 60000 2000 Gain on Disposal Exchanged old office equipment and cash for new office equipment. To record depreciation on office equipment. To record loss on disposal of old office equipment.
More info Apr. 1 Jan. 1 Traded in old office equipment with book value of $55,000 (cost of $129,000 and accumulated depreciation of $74,000) for new equipment. Sukiora also paid $60,000 in cash. Fair value of new equipment is $117,000. Assume the exchange had commercial substance. Sold equipment that cost $36,000 (accumulated depreciation of $25,000 through December 31 of the preceding year). Sukiora received $5,900 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. Dec. 31 Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a $9,000 residual value.
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