Question

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.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Date Account Title Debit Credit
Equipment - New ($280000+71000) $         3,51,000
Accumulated depreciation -Old Equipment $         3,30,000
Loss on exchange ( $301000-280000) $             21,000
Equipment - old $         6,31,000
Cash $             71,000
( to record exchange)
NOTE: ASK YOUR QUERIES.PLEASE DO UPVOTE
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 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.)
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...
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.)
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.
Assigning Value to Assets in Nonmonetary Exchange with Commercial Substance Mariot Inc. trades its old equipment...
Assigning Value to Assets in Nonmonetary Exchange with Commercial Substance Mariot Inc. trades its old equipment for new equipment with a $6,000 fair value. Mariot paid $3,500 cash on the exchange. Original cost of old equipment $5,000 Accumulated depreciation on old equipment 4,000 If the transaction has commercial substance, what amount does Mariot assign to the new equipment? Amount assigned to new equipment ?????
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...
Monet Company decides to exchange some equipment for new equipment. The details are shown below: Equipment...
Monet Company decides to exchange some equipment for new equipment. The details are shown below: Equipment (old)   cost   $6,480   Acc. Depreciation             3,570 Instructions: Record the exchange on the books of Monet assuming the transaction lacks commercial substance, the fair value of the old equipment is $2,600 and Monet had to pay $200 cash Date Debit Credit Record the exchange on the books of Monet assuming the transaction lacks commercial substance, the fair value of the old equipment is $3,390 and...
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations...
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) The equipment was purchased on account for $29,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts....
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations...
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) The equipment was purchased on account for $29,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts....
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?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT