Mehta Company traded a used welding machine ( cost 9,000, accumulated depreciati
ID: 2501432 • Letter: M
Question
Mehta Company traded a used welding machine ( cost 9,000, accumulated depreciation 3,000) for office equipment with an estimated fair value of 5,000. Mehta also paid 3,000 cash in the transaction.
Prepare the journal entry to record the exchange. (The exchange has commerical substance).
Account Titles and Explanation Debit Credit
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Explanation / Answer
Office Equipment Dr 5000 Accumulated Depreciation 3000 Loss On Sale of Machine 4000 To Cash 3000 To Machine 9000