Problem 23-8 (AICPA Adapted)Lecherous Company traded a used equipment for a newermodel with a dealer.e usedOld equipment:,000,000000000Original costAccumulated depreciationFair value - unknown1,000,000600,000New equipment:0,000cashList priceCash price without trade inCash payment with trade in1,600,0001,400,000980,000EnedRequired:e isrepare journal entry to record the exchange transaction. P1,000,000 for another used equipment with fair vPrepare journal entries to record the transactions.Smile Company exchanged used equipment for anofeequipment of Frown Company. The following informataaccumulated deprfairPL,200,000. The exchange is nonmonetary.ProbMelloof P2Required:PriceCharsValueInsurMotoProblem 23-7 (ACP)Smile Company exchanged used equipment for sequipment of Frown Company. The following informpertains to the exchange:TotalLessCashSmileFrowEquipmentAccumulated depreciationFair value of equipment2,400,0002,000,000500,0002,200,001,750,00500,000TheP20refuRequired:RePrepare journal entry on the books of Smile and Frown.Pre654

Answered: New equip ment: List price Cash price…

New equip ment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: repare journal entry to record the exchange transaction.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 9E: Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens...

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Question

Problem 23-8 (AICPA Adapted)
Lecherous Company traded a used equipment for a newer
model with a dealer.
e used
Old equipment:
,000
,000
000
000
Original cost
Accumulated depreciation
Fair value - unknown
1,000,000
600,000
New equipment:
0,000
cash
List price
Cash price without trade in
Cash payment with trade in
1,600,000
1,400,000
980,000
Ened
Required:
e is
repare journal entry to record the exchange transaction.

P1,000,000 for another used equipment with fair v
Prepare journal entries to record the transactions.
Smile Company exchanged used equipment for anofe
equipment of Frown Company. The following informata
accumulated depr
fair
PL,200,000. The exchange is nonmonetary.
Prob
Mello
of P2
Required:
Price
Chars
Value
Insur
Moto
Problem 23-7 (ACP)
Smile Company exchanged used equipment for s
equipment of Frown Company. The following inform
pertains to the exchange:
Total
Less
Cash
Smile
Frow
Equipment
Accumulated depreciation
Fair value of equipment
2,400,000
2,000,000
500,000
2,200,00
1,750,00
500,000
The
P20
refu
Required:
Re
Prepare journal entry on the books of Smile and Frown.
Pre
654

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