(Solution) An entity purchases a machine for its factory on 1 July 20x0 for $90,000. > Snapessays.com


(Solution) An entity purchases a machine for its factory on 1 July 20x0 for $90,000.


I need help with answering this question:An entity purchases a machine for its factory on 1 July 20x0 for $90,000. It is estimatedthat the machine has a useful life of 8 years, and straight-line depreciation is used todepreciate the machine. On 30 June 20x2, the entity receives an unexpected offer toexchange the machine for a truck which originally cost $70,000 and has a market valueof $20,000. Which of the following journal entries is most appropriate when accountingfor the sale of the machine and the receipt of the truck as payment?A: 30 June 20x2Dr Motor Vehicles 70,000Dr Acc. Dep. Machinery/Equipment 22,500Cr Gain on Sale 2,500Cr Machinery/Equipment 90,000To record sale of machine and purchase of the truckB: 30 June 20x2Dr Motor Vehicles 20,000Dr Loss on Sale 67,500Cr Machinery/Equipment 90,000To record sale of machine and purchase of the truckC: 30 June 20x2Dr Motor Vehicles 70,000Cr Gain on Sale 2,500Cr Machinery/Equipment 67,500To record sale of machine and purchase of the truckD: 30 June 20x2Dr Motor Vehicles 70,000Dr Acc. Dep. Motor Vehicles 33,750Cr Gain in Sale 13,750Cr Machinery/Equipment 90,000To record same of machine and purchase of the truckE: 30 June 20x2Dr Motor Vehicles 20,000Dr Loss on Sale 47,500Dr Acc. Dep. Motor Vehicles 22,500Cr Machinery/Equipment 90,000To record sale of machine and purchase of the truckF: none of the above

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 21, 2023

Solution~00021147637988.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 21, 2023

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote