Problem 23-8 (AICPA Adapted)Lecherous Company traded a used equipment for a newermodel with a dealer.e usedOld equipment:,000,000000000Original costAccumulated depreciationFair value - unknown1,000,000600,000New equipment:0,000cashList priceCash price without trade inCash payment with trade in1,600,0001,400,000980,000EnedRequired:e isrepare journal entry to record the exchange transaction. P1,000,000 for another used equipment with fair vPrepare journal entries to record the transactions.Smile Company exchanged used equipment for anofeequipment of Frown Company. The following informataaccumulated deprfairPL,200,000. The exchange is nonmonetary.ProbMelloof P2Required:PriceCharsValueInsurMotoProblem 23-7 (ACP)Smile Company exchanged used equipment for sequipment of Frown Company. The following informpertains to the exchange:TotalLessCashSmileFrowEquipmentAccumulated depreciationFair value of equipment2,400,0002,000,000500,0002,200,001,750,00500,000TheP20refuRequired:RePrepare journal entry on the books of Smile and Frown.Pre654

Answered: New equip ment: List price Cash price…

New equip ment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: repare 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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