Question 11 of 11 < > - 17 ⠀ Pina Colada Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,300 (cost $61,300 less accumulated depreciation $30,000). Its fair value is $41,500, and cash of $6,700 is paid. Prepare the entry to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit

Question 11 of 11 < > - 17 ⠀ Pina Colada Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,300 (cost $61,300 less accumulated depreciation $30,000). Its fair value is $41,500, and cash of $6,700 is paid. Prepare the entry to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Debit Credit

Accounting (Text Only)

26th Edition

ISBN:9781285743615

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter10: Fixed Assets And Intangible Assets

Section: Chapter Questions

Problem 10.26EX

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question 6 Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.
1. Our Company trades in old equipment that cost $81,000, has a book value of $53,000 and a fair value of $45,000. The new equipment has a list price of $94,000. We receive a trade in allowance for the old equipment of $50,000. This transaction has commercial substance. Prepare the journal entry to record this exchange. Answer: Debits Credits
Question 20 - A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in the amount of $120 had been taken each year. The new printer has a fair market value of $1,250. A trade-in allowance of $400 is granted, and the balance is paid in cash. The transaction to enter the exchanges of these two assets would result in the recognition of a gain of $40. a loss of $40. a gain of $200. neither a gain nor a loss.
Question Content Area On December 31, Strike Company traded in one of its batting cages for another one that has a cost of $561,467. Strike receives a trade-in allowance of $29,317.82. The old equipment had an initial cost of $217,169 and has accumulated depreciation of $184,593.65. Depreciation has been recorded up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction? a.gain of $29,317.82 b.gain of $3,257.54 c.loss of $3,257.54 d.no loss or gain will be recorded
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Q A company exchanged old equipment and $18,000 cash for similar equipment. The book value and the fair value of the old equipment were $82,000 and $90,000, respectively. Assuming that the exchange lacks commercial substance, the company would record a gain(loss) on exchange of assets in the amount of: Multiple Choice $8,000. ($8,000). $26,000. $0.
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PROBLEM 1 On August 1, Barreto Company exchanged a machine for a similar machine owned by Blakey Company and also paid $7,000 cash to Blakey Company. Barreto's machine cost $85,000 when originally purchased and has accumulated depreciation to date of $25,000 and a fair market value of $55,000. Blakey's machine originally cost $96,000 and has accumulated depreciation to date of $42,000 and a fair value of $62,000. Prepare the necessary journal entries for Barreto Company and Blakey Company to record this transaction assuming commercial substance.
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