2) 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.
3) Ottawa Corporation owns machinery that cost $ 20,000 when purchased on July 1, 2011. Depreciation has been recorded at a rate of $ 2,400 per year, resulting in a balance is accumulated depreciation of $ 8,400 at December 31, 2014. The machinery is sold on September 1, 2015, for $ 10,500. Prepare journal entries to( a) update depreciation for 2015 and( b) record the sale.
4) Martin Buber co. purchased land as a factory site for $ 400,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $ 42,000 to raze the old buildings and salvaged lumber and brick for $ 6,300. Legal fees of $ 1,850 were paid for title investigation and drawing the purchase contract. Martin Buber paid $ 2,200 to an engineering firm for a land survey, and $ 68,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $ 1,500, and a liability insurance premium paid during construction was $ 900. The contractor’ s charge for construction was $ 2,740,000. The company paid the contractor in two installments:$ 1,200,000 at the end of 3 months and $ 1,540,000 upon completion. Interest
2) 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.
3) Ottawa Corporation owns machinery that cost $ 20,000 when purchased on July 1, 2011. Depreciation has been recorded at a rate of $ 2,400 per year, resulting in a balance is accumulated depreciation of $ 8,400 at December 31, 2014. The machinery is sold on September 1, 2015, for $ 10,500. Prepare journal entries to( a) update depreciation for 2015 and( b) record the sale.
4) Martin Buber co. purchased land as a factory site for $ 400,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $ 42,000 to raze the old buildings and salvaged lumber and brick for $ 6,300. Legal fees of $ 1,850 were paid for title investigation and drawing the purchase contract. Martin Buber paid $ 2,200 to an engineering firm for a land survey, and $ 68,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $ 1,500, and a liability insurance premium paid during construction was $ 900. The contractor’ s charge for construction was $ 2,740,000. The company paid the contractor in two installments:$ 1,200,000 at the end of 3 months and $ 1,540,000 upon completion. Interest