Prepare the Journal Entries to Record the Following Transactions for Ogleby

question 15

Essay

Prepare the journal entries to record the following transactions for Ogleby Company which has a calendar year end and uses the straight-line method of depreciation.
a) On September 30 2017 the company exchanged old delivery equipment and $36000 for new delivery equipment. The old delivery equipment was purchased on January 1 2015 for $126000 and was estimated to have a $18000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December 31 2016. It is estimated that the fair value of the old delivery equipment is $54000 on September 30 2017.
(b) On June 30 2017 the company exchanged old office equipment and $40000 for new office equipment. The old office equipment originally cost $80000 and had accumulated depreciation to the date of disposal of $35000. It is estimated that the fair market value of the old office equipment on June 30 was $60000. The transaction has commercial substance.

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Definitions:

External Urethral Sphincter

A circular muscle that controls urination by constricting or relaxing to allow the flow of urine from the bladder.

Pubococcygeus

A muscle of the pelvic floor that supports the pelvic organs and is involved in urinary control and sexual function.

Occipital Bone

A bone at the lower back part of the skull, contributing to the cranial cavity's posterior wall and base.

Spinalis Cervicis

The spinalis cervicis is a muscle in the back of the neck that is part of the erector spinae muscle group, aiding in extending the cervical spine (neck).