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Unformatted text preview: $20,000 for the forklift, the loss on exchange is still $4,000. Assuming the company uses a separate account to record the cost of forklifts, the journal entry to record this dissimilar exchange debits forklifts for $26,000, debits accumulated depreciation-vehicles for $80,000, debits loss on exchange of vehicles for $4,000, credits vehicles for $90,000, and credits cash for $20,000....
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- Fall '10