Brief Exercise 10-11 Sarasota Company traded a used truck for a new truck. The u
ID: 2552022 • Letter: B
Question
Brief Exercise 10-11
Sarasota Company traded a used truck for a new truck. The used truck cost $51,900 and has accumulated depreciation of $46,710. The new truck is worth $64,010. Sarasota also made a cash payment of $62,280.
Prepare Sarasota’s entry to record the exchange. (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
Trucks (new) Accumulated Depreciation-Trucks Trucks (used) Cash Loss on Disposal of Trucks
Trucks (used) Cash Accumulated Depreciation-Trucks Loss on Disposal of Trucks Trucks (new)
Loss on Disposal of Trucks Trucks (new) Accumulated Depreciation-Trucks Trucks (used) Cash
Loss on Disposal of Trucks Trucks (new) Trucks (used) Accumulated Depreciation-Trucks Cash
Trucks (new) Accumulated Depreciation-Trucks Loss on Disposal of Trucks Trucks (used) Cash
Explanation / Answer
Solution:
Account Titles and Explanation
Debit
Credit
Trucks (New)
$64,010
Accumulated Depreciation – Trucks
$46,710
Loss on Disposal of Truck (Bal. Fig)
$3,460
Trucks (Used)
$51,900
Cash
$62,280
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Account Titles and Explanation
Debit
Credit
Trucks (New)
$64,010
Accumulated Depreciation – Trucks
$46,710
Loss on Disposal of Truck (Bal. Fig)
$3,460
Trucks (Used)
$51,900
Cash
$62,280
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