The $60,000 Original Cost of a Machine Is Recorded in an Account

question 126

Essay

The $60,000 original cost of a machine is recorded in an account called Old Machine.After $45,000 of depreciation was recorded,the machine was traded in on a new machine with a cash price of $85,000.A $10,500 trade-in allowance was received on the old machine and the balance was paid in cash.This transaction has commercial substance.Prepare the general journal entry to record the trade; the cost of the new machine should be debited to a New Machine account.

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Definitions:

Major Structure

denotes the most stable or predominant form (configuration or conformation) of a molecule among possible structures.

Organic Product

A compound produced through organic chemistry processes, typically involving carbon-based molecules synthesized from natural or synthetic precursors.

Major Structure

The primary or most stable configuration out of various potential structures for a molecule.

Necessary Reagents

Specific chemicals or substances required to carry out a particular chemical reaction.