A company exchanges an old machine for a new machine and cash is paid for the new machine.Assume there is a Gain on Exchange of Machine.In the journal entry to record the exchange by the owner of the old machine,what accounts will the accountant debit?
A)Machine and Accumulated Depreciation
B)Cash and Machine
C)Accumulated Depreciation,Cash and Machine
D)Accumulated Depreciation,Cash,Machine and Gain on Exchange of Machine

Question

Quizplus · Accepted Answer

The accountant will debit the new Machine account and the Accumulated Depreciation account of the old machine to remove it from the books.

A Company Exchanges an Old Machine for a New Machine