A company owns equipment that had cost $45,200 and has accumulated depreciation of $19,800. The company exchanges the equipment for a newer model that has a market value of $54,000. Required: 1. Record the exchange assuming the company paid $31,400 cash and the exchange has commercial substance. 2. Record the exchange assuming the company paid $23,400 cash and the exchange has commercial substance. View transaction list Journal entry worksheet B Record the exchange assuming the company paid $31,400 cash and the exchange has commercial substance. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit >

A company owns equipment that had cost $45,200 and has accumulated depreciation of $19,800. The company exchanges the equipment for a newer model that has a market value of $54,000. Required: 1. Record the exchange assuming the company paid $31,400 cash and the exchange has commercial substance. 2. Record the exchange assuming the company paid $23,400 cash and the exchange has commercial substance. View transaction list Journal entry worksheet B Record the exchange assuming the company paid $31,400 cash and the exchange has commercial substance. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit >

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.
Kerry, Inc., exchanged land and cash of $7,700 for equipment. The land had a book value of $52,000 and a fair value of $56.700. Required: Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the exchange of assets. Hole: Enter debits befere ti diis. Tránsaction General Journal Debit Credit
Heip Kerry, Inc., exchanged land and cash of $7,600 for equipment. The land had a book value of $51,000 and a fair value of $55,600. Required: Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the exchange of assets. Note: Enter debits before credits. Transaction General Journal Debit Credit
Martinez Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for similar equipment used in the operations of Sandhill Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up $31,360 21,280 14,000 3,360 $31,360 11,200 17,360 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Nash Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Crane Company. The following information pertains to the exchange Nash Co Crane Co $29,120 $29,120 19,760 10,400 13,000 16,120 3,120 Equipment (cost) Accumulated depreciation Fair value of equipment Cash giving up I Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.) Account titles and explanation Nash Company Equipment Accumulated depreciation equipment Equipment Cash Debit Crane Company? 12480 19760 Credit Crane company Equipment Accumulated Depreciation-Equipment Loss on Disposal of Equipment Cash Equipment B. Prepare the journal…
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Stellar Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Pearl Company. The following information pertains to the exchange. Stellar Co. Pearl Co. Equipment (cost) $36,960 $36,960 Accumulated depreciation 25,080 13,200 Fair value of equipment 16,500 20,460 Cash given up 3,960 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Stellar Company: enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title…
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Bella company entered into an exchange agreement of exchanging its equipment for two pickup vehicles. The equipment has original cost of $32,000 and accumulated depreciation of $7,000. The fair value of equipment was $22,000 and Bella also paid cash of $7,200 for the exchange. At what amount will pick up vehicles be recorded assuming that the exchange has commercial substance. a. $32,200 b. $29,200 c. $22,000 d. $25,000
question 6 Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.
Peanut Corporation exchanged land and cash of $6,500 for equipment. The land had a book value of $45,000 and a fair value of $34,000. Assume the exchange has commercial substance.Required:Prepare the journal entry to record the exchange.
A company exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received $ 73,800 $ 80,800 $ 12,100 The company would record the new equipment at: Multiple Choice $68,700. $70,200. $72,950. $56,200.