Question

Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $323,000 (original cost of $673,000 less $350,000 in accumulated depreciation) and its fair value of the old equipment is $300,000. Cedric paid $73,000 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.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cedric Company recently traded in an older model of equipment for a new model. The old...
Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $301,000 (original cost of $631,000 less $330,000 in accumulated depreciation) and its fair value of the old equipment is $280,000. Cedric paid $71,000 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.)
Mehta Company traded a used welding machine (cost $27,801, accumulated depreciation $9,267) for office equipment with...
Mehta Company traded a used welding machine (cost $27,801, accumulated depreciation $9,267) for office equipment with an estimated fair value of $15,445. Mehta also paid $9,267 cash in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (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 0 for the amounts.)
Our Company trades in old equipment that cost $32,000, has a book value of $21,000 and...
Our Company trades in old equipment that cost $32,000, has a book value of $21,000 and a fair market value of $24,500. The new equipment has a list price of $33,000. We receive a trade in allowance for the old equipment of $29,000. This transaction has commercial substance. Prepare the journal entry to record this exchange. 1B .Our Company trades in old equipment that cost $32,000, has a book value of $21,000 and a fair market value of $19,000. The...
Cliff Company traded in an old truck for a new one. The old truck had a...
Cliff Company traded in an old truck for a new one. The old truck had a cost of $110,000 and accumulated depreciation of $66,000. The new truck had an invoice price of $48,000. Huffington was given a $38,000 trade-in allowance on the old truck, which meant they paid $10,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck?
Beerbo Inc. traded a used truck for a small computer. Before this exchange of non-monetary assets...
Beerbo Inc. traded a used truck for a small computer. Before this exchange of non-monetary assets (ENMA), Beerbo's balance sheet show the used truck at a cost of $9,000 with an accumulated depreciation balance of $3,000. The fair value of the small computer was $5,000. Beerbo also paid $3,000 in the transaction. Assume the ENMA has commercial substance. What is the total fair value given by Beerbo in this transaction? What is the total fair value received by Beerbo in...
On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the...
On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Robers’ Asset Phifer’s Asset Original cost $ 170,000 $ 190,000 Accumulated depreciation 95,000 103,000 Fair value 90,000 75,000 To equalize the exchange, Phifer paid Robers $15,000 in cash. What I need solved: Please help me record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. (If no entry is required for a transaction/event, select...
Iniesta Company traded machinery with original cost of $220,000 and accumulated depreciation of $30,000. It received...
Iniesta Company traded machinery with original cost of $220,000 and accumulated depreciation of $30,000. It received in exchange from Xavi Company a machine with a fair value of $200,000. Iniesta also paid cash of $20,000 in the exchange. Xavi’s machine has a book value of $190,000. What amount of gain or loss should Iniesta recognize on the exchange assuming the transaction lacks commercial substance? i know the answer, but please explain.
Spencer traded its old machine for a newer model on January 1, 2020. The old machine...
Spencer traded its old machine for a newer model on January 1, 2020. The old machine was purchased on January 1, 2016 at a cost of $ 30,000 and had accumulated depreciation of $ 22,000. The estimated fair value of the old machine was $ 4,000. The new machine was listed at $ 50,000 but Spencer received a trade-in allowance for the old machine of $ 8,000, so they had to pay $ 42,000 in the exchange. Calculate the cost...
Beerbo Inc. traded a used truck for a small computer. Before this exchange of non-monetary assets...
Beerbo Inc. traded a used truck for a small computer. Before this exchange of non-monetary assets (ENMA), Beerbo's balance sheet show the used truck at a cost of $20,000 with an accumulated depreciation balance of $18,000. The fair value of the small computer was $3,300. Beerbo also paid $500 in the transaction. Assume the ENMA lacks commercial substance. How much gain (loss) must Beerbo record from in this transaction? Input gains as positive numbers, losses as negative numbers (gains =...
Crane Company Inc. gave a piece of equipment to Sarasota Inc. in exchange for a new...
Crane Company Inc. gave a piece of equipment to Sarasota Inc. in exchange for a new machine and $5,000. The exchange lacks commercial substance. Equipment: Historical Cost = $70,000 Accumulated Depreciation = $40,000 Fair Market Value = $35,000 Machine: Historical Cost = $50,000 Accumulated Depreciation = $35,000 Fair Market Value = $40,000 Instructions: (1.) Prepare Crane Company Inc.'s journal entry to record exchange transaction. (2.) Prepare Sarasota Inc.'s journal entry to record exchange transaction.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT