Brief Exercise 10-9 Kingbird Corporation traded a used truck (cost $20,000, accu

Question

Brief Exercise 10-9

Kingbird Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small computer worth $4,092. Kingbird also paid $620 in the transaction.

Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Explanation / Answer

Debit Credit

Computer a/c dr $ 4,092

Accumulated Depreciation of truck a/c dr $18,000

To Trucks a/c $ 20,000

To Cash/ Bank a/c $ 620

To gain on sale of truck a/c $ 1,472

Total = 22,092 22,092

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