Question

During 2018, Zora Company completed the following transactions: i (Click the icon to view transactions.) Record the transactions in the joumal of Zora Company. (Record debits first, then credits Select the explanation on the last line of the journal entry table.) Jan. 1: Traded in old office equipment with book value of $60,000 (cost of $129,000 and accumulated depreciation of $69,000) for new equipment Zora also paid $60,000 in cash. Fair value of new equipment is $130,000. Assume the exchange had commercial substance. (Record a single compound journal entry.) Date Accounts and Explanation Debit Credit Cred Jan. 1 Choose from any list or enter any number in the input fields and then click Check Answer

Answer 1

Zora Company Journal Enteries Date Particulars Debit in $ Credit in $ Jan-01 Office Equipment (new) a/c Dr. 130000 Accumulated Depreciation Office Equipment a/c Dr. 69000 To Office Equipment (old) 129000 To Cash 60000 To Gain on Disposal 10000 (Exchanged old office equipment and cash for new office equipment.) 2700 2700 Apr-01 Depreciation Expense-Equipment a/c Dr. To Accumulated Depreciation Equipment (To record partial year depreciation on equipment.) 54000 / 5 = 10800 / 4 = 2700 Apr-01 Cash a/c Dr. Accumulated Depreciation - Equipment a/c Dr. Loss on Disposal a/c Dr. To Equipment (To record sale of equipment.) 8300 44700 1000 54000 65000 65000 Dec-31 Depreciation Expense-Office Equipment a/c Dr. To Accumulated Depreciation - Office Equipment (To record depreciation on office equipment.) 130000 x 2 x 1/4 = 65000