Answer:
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery 123,890
Dr Loss on disposal of machinery 19,590
Cr Cash 185,480
Cr Machinery, Old $239,800
Explanation:
Preparation of all entries that are necessary at April 1, 2021.
April 1, 2021
Dr Depreciation expense 11,990
Cr Accumulated depreciation 11,990
(47,960 * 3/12)
(Being To record depreciation)
April 1, 2021
Dr Machinery, New $281,800
Dr Accumulated depreciation- Machinery (111,900+11,990) 123,890
Dr Loss on disposal of machinery 19,590
[185,480+$239,800-($281,800+123,890)]
Cr Cash 185,480
($281,800-$96,320)
Cr Machinery, Old $239,800
(Being To record the exchange of machinery)
