ompany traded a used equipment for a newer Lecherous Old equipment: Original cost Accumulated depreciation Fair value – unknown 1,000,000 600,000 - New equipment: EGO 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
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Lecherous Company traded a used equipment for a newer
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.
Transcribed Image Text:Lecherous Company traded a used equipment for a newer 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.
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