Problem 23-4 (AICPA Adapted) Wilbur Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Average retail price New equipment: 800,000 600,000 170,000 List price Cash price without trade in Cash payment with trade in Required: 1,000,000 900,000 780,000 Prepare journal entry to record the exchange transaction.
Problem 23-4 (AICPA Adapted) Wilbur Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Average retail price New equipment: 800,000 600,000 170,000 List price Cash price without trade in Cash payment with trade in Required: 1,000,000 900,000 780,000 Prepare journal entry to record the exchange transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 23-4 (AICPA Adapted)
Wilbur Company traded a used equipment for a newer model
with a dealer.
Old equipment:
Original cost
Accumulated depreciation
Average retail price
New equipment:
800,000
600,000
170,000
List price
Cash price without trade in
Cash payment with trade in
Required:
1,000,000
900,000
780,000
Prepare journal entry to record the exchange transaction.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbbc1d72c-a36d-4df7-8368-6d0329433912%2F3099ddf8-5d3c-409b-ad67-b07208b631a6%2F5m9g46i_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 23-4 (AICPA Adapted)
Wilbur Company traded a used equipment for a newer model
with a dealer.
Old equipment:
Original cost
Accumulated depreciation
Average retail price
New equipment:
800,000
600,000
170,000
List price
Cash price without trade in
Cash payment with trade in
Required:
1,000,000
900,000
780,000
Prepare journal entry to record the exchange transaction.
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