Myers Corporation Exchanged an Old Machine Costing $18,000, with an Accumulated

question 126

Multiple Choice

Myers Corporation exchanged an old machine costing $18,000, with an accumulated depreciation of $15,000, and cash of $5,000 for a new machine cash price of $22,000. What is the journal entry?

• A) Debit Machinery $20,000; debit Accumulated Depreciation $15,000; credit Machinery $18,000; credit Cash $14,000
• B) Debit Machinery $17,000; debit Accumulated Depreciation $15,000; credit Gain on Disposal of Plant Asset $3,000; credit Machinery $18,000; credit Cash $17,000
• C) Debit Machinery $22,000; debit Accumulated Depreciation $15,000; credit Machinery $18,000; credit Cash $5,000; credit Gain on Disposal $14,000
• D) None of these answers is correct.

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Definitions:

Shape Height

A property in graphical software that specifies the vertical dimension of a shape or object.

Shape Width

A property of graphical objects in computing that refers to the extent or measurement of an object's side-to-side dimension.

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A technique used in visual applications, such as spreadsheets and graphic design, to fill cells with solid colors or patterns to differentiate or highlight them.

Table

A collection of data organized in rows and columns, making it easy to store, access, and manage information efficiently.