Funkels Forklifts trades in a forklift for $33,000 cash. The machine originally cost $90,000 and...
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Funkels Forklifts trades in a forklift for $33,000 cash. The machine originally cost $90,000 and its carrying amount is $40,000. GST is payable on the trade-in. What are the correct journal entries? Group of answer choices
Debit Accounts Payable $33,000; Debit forklift $90,000; Credit Accumulated depreciation of forklift $50,000; Credit GST $3,000; Credit Gain on sale $10,000 Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $40,000; Credit forklift $90,000; Credit GST $3,000; Credit Gain on sale $10,000
Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $40,000; Debit Loss on sale $10,000; Credit GST $3,000; Credit forklift $90,000 Debit Accounts Payable $33,000; Debit Accumulated depreciation of forklift $50,000; Debit Loss on sale; $10,000 Credit forklift $90,000; Credit GST $3,000
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