Kingbird 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: 22,400 cash paid: 14,200 cost of old melter (5 year life, $900 salvage valye) 15,900 accumulated depreciation-old melter (straight-line): 8,900 secondhand fair value of old melter 7,400. prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commerical substance, and (b) lacks commerical substance, Kingbird's fiscal year ends on demcember 31, and deprecation has been recorded through decemeber 31, 2024

Kingbird 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: 22,400 cash paid: 14,200 cost of old melter (5 year life, $900 salvage valye) 15,900 accumulated depreciation-old melter (straight-line): 8,900 secondhand fair value of old melter 7,400. prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commerical substance, and (b) lacks commerical substance, Kingbird's fiscal year ends on demcember 31, and deprecation has been recorded through decemeber 31, 2024

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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