Cooper Industries had a piece of equipment that cost $56,000 and had accumulated depreciation of $23,000.
Requirement:
1. Record the dispostion of the equipment assuming the following independent situations:
a. Cooper discarded the equipment, receiving $0.
b. Cooper sold the equipment for $34,500
c. Cooper traded the equipment in on a new piece of equipment costing $62,000. Cooper was granted a $33,500 trade-in allowance for the old equipment and paid the difference in cash.
d. Cooper traded the equipment in on a new piece of equipment costing $52,000. Cooper was granted a $28,000 trade-in allowance for the old equipment and signed a note payable for the difference
Template for the answers suppose to look like
Journal Entry
Accounts Debit Credit
Options for account name (accumulated depreciation, cash, depreciation expense, Equipment, gain on disposal equipment, loss on disposal equipment and Note payable.