On April 1, Piyush Company traded an old machine that originally cost $32,000 and had been depreciated $24,000 for a new machine that had a cash price of $40,000. Assuming that this transaction has commercial substance, a) Prepare the journal entry to record the exchange under the assumption that a $5,000 trade-in allowance was received and the balance was paid in cash. (4 marks) b) Prepare the journal entry to record the exchange under the assumption that instead of a $5,000 trade-in allowance, a $12,500 trade-in allowance was received and the balance was paid in cash.

UMPI Corporation purchased conveyor equipment with a list price of $15,000. Presented below are three independent cases related to the equipment. (Round to the nearest dollar.) Instructions: Prepare the general journal entries required to record the acquisition and payment in each of the independent cases below. 6.1  UMPI paid cash for the equipment 8 days after the purchase. The vendor’s credit terms are 2/10, n/30. Assume that equipment purchases are initially recorded gross. 6.2  UMPI traded in equipment with a book value of $2,000 (initial cost $8,000), and paid $8,500 in cash. The old equipment could have been sold for $1,400 at the date of trade. (The exchange did have commercial substance.) 6.3  UMPI signed an interest-bearing note for the equipment on the date of purchase. The note was due in one year and was paid on time.

On January 2, Summers Company received a machine that the company had ordered with an invoice price of $106,000. Freight costs of $840 were paid by the vendor per the sales agreement. The company exchanged the following on January 2 to acquire the machine: a. Issued 2,400 shares of Summers Company common stock, par value $1 (market value, $3.50 per share). b. Signed a note payable for $52,000 with an 10.3 percent interest rate (principal plus interest are due April 1 of the current year). c. The balance of the invoice price was on account with the vendor, to be paid in cash by January 12. On January 3, Summers Company paid $1,800 cash for installation costs to prepare the machine for use. On January 12, Summers Company paid the balance due on its accounts payable to the vendor. P8-1 Part 3 3. Indicate the effects of the purchase and subsequent cash payment on the accounting equation. Note: Enter decreases to account categories as negative amounts. Date January 02 January 02 January 03…

On January 1, 2021, Janelle Co. sold equipment to James Inc. in exchange for a zero-interest bearing note with a face value of $110,000, with payment due in 12 months. The fair value of the equipment on the date of the sale was $100,000. Janelle paid $55,000 for the cost of equipment. A. Record the journal entries for January 1, 2021 B. What is the amount of revenue to be recognized on this transaction at December 31, 2021?

Parr Company traded in a used delivery truck with a carrying amount of P54,000 for a new delivery truck having a list price of P160,000 and paid a cash difference to the dealer of P75,000. The used truck has a fair value of P60,000 on the date of the exchange.  At what amount should the new truck be recorded on Parr's books? P135,000 P129,000 P160,000 P106,000

Windsor Inc. factors receivables with a carrying amount of $228,700 to Joffrey Company for $175,300 on a with recourse basis. The recourse provision has a fair value of $2,290. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Windsor Inc. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit

Pearl Inc. factors receivables with a carrying amount of $242,700 to Joffrey Company for $178,900 on a with recourse basis.The recourse provision has a fair value of $3,390. This transaction should be recorded as a sale.Prepare the appropriate journal entry to record this transaction on the books of Pearl Inc. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit                             Click if you would like to Show Work for this question: Open Show Work

Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. The equipment was purchased on account for $43,000 Credit terms were 310/, n30/. Payment was made within the discount period and the company records the purchases of equipment net of discounts. Connors gave the seller a noninterest-bearing note. The note required payment of $45,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 12% properly reflects the time value of money in this situation, Connors traded in old equipment that had a book value of $15,000 ( original cost of $32, 000 and accumulated depreciation of $17,000) and paid cash of 540,000. The old equipment had a fair value of $9, 700 on the date of the exchange. The exchange has commercial substance. Connors issued 2, 000 shares of its no-par common stock in exchange for the equipment. The market value of…

A lathe priced at a fair market value of $124,000 is acquired in a transaction that has commercial substance by trading in a similar lathe and paying cash for the difference between the trade-in allowance of $45,000 and the price of the new lathe. Assuming that the book value of the lathe traded in is $36,000, what is the gain or loss on the exchange?

Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on a with recourse basis. Instructions The recourse provision has a fair value of $1,000. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Ames Quartet Inc.