Lecherous Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Fair value -unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction.

Lecherous Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Fair value -unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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PLEASE COMPLETE PART 24-2 PART ONLY. Metro Inc. trades its used machine for a new model at Denver Co. The used machine has a book value of $42,000 (cost $64,000) and a fair value of $50,000. Metro receives $5,000 cash from Denver. A) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has no commercial substance. B) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has commercial substance. 24-2) Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000) and a fair value of $13,000. The new model has a fair value of $16,000 and Denver gives Metro a trade-in allowance of $15,000 for the used machine. Assume the exchange has No commercial substance. A) How much does Metro have to pay to or receive from Denver? Explain? . B) Prepare Metro's journal entry to record this
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Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $200,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required:Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
PLEASE COMPLETE PART 24-3 ONLY 24-1) Metro Inc. trades its used machine for a new model at Denver Co. The used machine has a book value of $42,000 (cost $64,000) and a fair value of $50,000. Metro receives $5,000 cash from Denver. A) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has no commercial substance. B) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has commercial substance. 24-2) Metro Industries trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (cost $12,000) and a fair value of $13,000. The new model has a fair value of $16,000 and Denver gives Metro a trade-in allowance of $15,000 for the used machine. Assume the exchange has No commercial substance. A) How much does Metro have to pay to or receive from Denver? Explain? . B) Prepare Metro's journal entry to record this 24-3) McLean Mfg. Company sold a…
Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $200,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange.
On January 2, 2020, Raid Delivery Company traded in an old delivery truck for a newer model. The exchange lacked commercial substance. Data relative to the old and new trucks follow: -Old Truck Original cost $45,000 Accumulated depreciation as of January 2, 2020 30,000 -New Truck List price 75,000 The FV of old Truck 14,000 Cash to be paid 56,000 What is the journal entry for the trade? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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E9-1A Acquisition Cost of Long-Lived Asset The following data relate to a firm’s purchase of a machine used in the manufacture of its product: Invoice Price $30,000 Applicable sales tax $2,000 Cash discount taken for prompt payment $400 Freight paid $260 Cost of Insurance coverage on machine while in transit $125 Installation costs $3,000 Testing and adjusting costs $475 Repair of damages to machine caused by the firm’s employee $750…
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A used delivery truck was traded in for a new truck. Information relating to the trucks follows: Used truck: Cost P1,600,000 Accumulated depreciation 1,200,000 New truck: List price 1,950,000 Cash price without trade-in 1,900,000 Cash price with trade-in 1,560,000 If the fair value of the old truck is not determinable, the loss on trade-in is P60,000 P350,000 P10,000 Nil
Pearl’s Delivery Company and Martinez’s Express Delivery exchanged delivery trucks on January 1, 2020. Pearl’s truck cost €22,500. It has accumulated depreciation of €15,500 and a fair value of €3,300. Martinez’s truck cost €8,500. It has accumulated depreciation of €6,800 and a fair value of €3,300. The transaction has commercial substance. Journalize the exchange for Pearl’s Delivery Company Account Titles and Explanation Debit Credit Equipment Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment please make sure the answer is correct 100%