FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash.
The following data relate to the purchase.
List price of new melter
Cash paid
Cost of old melter (5-year life, $800 salvage value)
Accumulated depreciation-old melter (straight-line)
Secondhand fair value of old melter
$20,200
No. Account Titles and Explanation
(a) Exchange has commercial substance:
12,800
14,300
8,100
6,700
Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks
commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024.
(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 O for the amounts. List all debit entries before credit entries.)
Debit
Credit
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