Question

oro Co. bills a client $62,000 for services provided and agrees to accept the following three items in full payment: (1) $10,000 cash, (2) computer equipment worth $80,000, and (3) to assume responsibility for a $28,000 note payable related to the computer equipment. The entry Groro makes to record this transaction includes which one or more of the following?

Answer 1

Groro has to receive $10000& a computer as a consideration for provision of services, and at the same time $28000 is payable in respect of computer. Therefore computer worth $52000 was in exchange of services and the remaining ($80000-$52000) =$28000 will be paid by Groro.The journal entry for the above transaction can be made in following manner:

In the books of Groro

Date	Particulars	L.F	Dr. ($)	Cr.($)
	Cash A/c Dr.		10000
	Computer A/c Dr.		80000
	To Sale of Service s			62000
	To Bills Payable/ Notes Payable			28000
	( Being services provided & Cconsideration received)

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