Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has accumulated depreciation of $17,000. The new truck is worth $35,000. Slaton also made a cash payment of $33,000. Prepare Slaton’s entry to record the exchange. (The exchange has commercial ­substance.)

Q: Caleb Co. owns a machine that had cost $42,400 with accumulated depreciation of $18,400. Caleb…

A: Journal entry: It refers to the recording of the transaction and event takes place in the business…

Q: Martinez owns machinery that cost $87,000 with accumulated depreciation of $40,000. The company…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Mathews Bus Service traded in a used bus for a new one. The original cost of the old bus was$52,000.…

A:

Q: Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in…

A:

Q: What would the journal entry to record the sale of the truck include?

A: Given information is: Dynasty Corp sold a truck for $15,000 cash. It was originally purchased for…

Q: Mirabel Company has an old equipment that cost P700,000 with an accumulated depreciation of…

A: In case of exchange of equipments having commercial substance, equipment sold and equipment acquired…

Q: On the first day of the fiscal year, a new walk-in cooler with a list price of $51,300 was acquired…

A: When new assets has been purchased and old assets has been given in exchange , then we need to find…

Q: Below is the information relative to an exchange of old equipment for new equipment by Ehrlich…

A: As per provisons of IFRS, where the exchange of assets takes place then the new asset shall be…

Q: Garcia Co. owns equipment that costs $78,300, with accumulated depreciation of $42,800. Garcia sells…

A: Formulas: Gain/(Loss) on sale=Sale value-Cost+Accumulated depreciation

Q: Line Company exchanged a car from its inventory for a computer system to be used in its…

A: Solution: In case of exchange of assets having commercial substance, assets received and asset given…

Q: Hodge Co. exchanged Building 24 which has an appraised value of $6,400,000, a cost of $10,120,000,…

A: Journal entries are the primary reporting of transactions occurring in the business.

Q: During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: When exchange lack commercial substance exist, the exchange of assets would be recorded at cost of…

Q: Pensacola Inc. purchased equipment on January 1, 2016 for $135,000.After 3 years Pensacola exchanged…

A: Cost basis means the value of an asset for tax purposes, generally, the purchase price of the asset.…

Q: Bella company entered into an exchange agreement of exchanging its equipment for two pickup…

A: In the case of an exchange, the new asset should be recorded at its fair value.

Q: Mary Co. exchanged a piece of equipment that had cost $40,000 (now 75% depreciated) for a truck with…

A: Accumulated depreciation on equipment = Cost of equipment x depreciation % = $40,000 x 75% = $30,000

Q: Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $8,000…

A: a. Date Account Titles and Explanations Debit Credit   Equipment - New $56,900…

Q: Sweets Inc. made several capital purchases during the last month of the year. As part of the…

A: Journal entries in the books of Sweet Inc.,         Amount in $ Date Particulars Dr  Cr…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…

Q: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells…

A: Gain (Loss) on Sale of Equipment = Sale Consideration - (Cost - Accumulated Depreciation)

Q: Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a…

A: Asset is the value of the items owned the firm. It can be tangible or intangible in nature. It can…

Q: Cheng Company traded a used truck for a new truck. The used truck cost $30,000 and has accumulated…

A: Given information:   Cost of an old truck $30,000 Accumulated depreciation  $27,000 Cost of…

Q: KAJ Incorporated purchased a machine costing $250,000 by paying $35,000 and signing a $215,000 note…

A: Cash flow from Financing activities: Cash flow from Financing activities include transactions…

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Solution:- Given, Calaveras Tire exchanged equipment for two pickup trucks. Book Value of equipment…

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: Cheyenne Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for…

A: The verification of the percentage of the cash received whether it exceeds 25% of the fair value of…

Q: GRACE Co. recently acquired two items of equipment. Acquired a press at an invoice price of…

A: In the given question, we were given two equipment, one of which is a press machine and the other is…

Q: s Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000.…

A: It is given that Willis bus sevice trade in an already used bus costing $52000 and it is also seen…

Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Company Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000 a…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Bacon Inc., a Boston-based engineering, acquired a machinery with a price of $15,200 by trading in…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

Q: BTS Company has some old equipment that cost P700,000 with an accumulated depreciation of P400,000.…

A: List price (i.e., P 800,000) is the price listed on the machine. The initial cost of machine will be…

Q: Company A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a…

A: If exchange have commercial substance, the sales value of assets  & Purchase value of assets…

Q: Calaveras Tire exchanged equipment for two pickup trucks. The book value and fair value of the…

A: Calculate the amount at which Calaveras value the pickup trucks.

Q: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: At the beginning of the current year, Junk Company traded in an old machine having a carrying amount…

A: Total purchase consideration = Carrying value of old machinery + cash paid = P1680000 + 600000 =…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…

A: Recorded value of new Truck = Fair value of the new Truck received  where, Fair value of the new…

Q: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…

A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…

Q: Garcia Co. owns equipment that costs $78,300, with accumulated depreciation of $42,800. Garcia sells…

A: CARRYING AMOUNT OF THE ASSET :  = COST OF ASSET - ACCUMULATED DEPRECIATION    CASES :  1. IF SALE…

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: If exchange of assets lacks commercial substance , i.e. fair values are not reliable then Property…

Q: Amble, Inc. exchanged a truck with a carrying amount of ₱12,000 and a fair value of ₱20,000 for a…

A: the correct option with proper explanation are as follows.

Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…

A: Journal means the book of prime entry where all entries are recorded in different pages.

Q: yvey Co. Equipment (cost)           Rwf 40,000              Rwf 40,000 Accumulated depreciation…

A: Impairment of Assets is ensuring that Asset is not carried at a amount higher than its recoverable…

Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…

A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…

Q: Consider each of the independent transactions below: a) The University of Belize traded an older…

A: In the case of an exchange of assets for obtaining a new asset, the gain or loss from the exchange…

Q: Jowee Company exchanged an old machine, costing P3,000,000 and 50% depreciated, for a used machine…

A: Where an asset is exchanged with another asset and the new assets is expected to have commercial…