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:

Researcher's Findings

The conclusions or results that a researcher has obtained from their study, often contributing to a field's body of knowledge.

Specific Case

A specific case refers to a particular instance or example that is distinguished from others due to unique characteristics or circumstances.

Gathering Data

The process of collecting information from various sources to analyze, interpret, or make decisions.

Bias

A prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.