Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $279,000 (original cost of $589,000 less $310,000 in accumulated depreciation) and its fair value of the old equipment is $260,000. Cedric paid $69,000 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.) No 1 Transaction 1 Equipment-new Accumulated depreciation Answer is not complete. General Journal Loss on exchange of assets Equipment old Cash 00000 Debit 310,000 Credit 260,000 O 589,000 C 69,000
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $279,000 (original cost of $589,000 less $310,000 in accumulated depreciation) and its fair value of the old equipment is $260,000. Cedric paid $69,000 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.) No 1 Transaction 1 Equipment-new Accumulated depreciation Answer is not complete. General Journal Loss on exchange of assets Equipment old Cash 00000 Debit 310,000 Credit 260,000 O 589,000 C 69,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $279,000 (original
cost of $589,000 less $310,000 in accumulated depreciation) and its fair value of the old equipment is $260,000. Cedric paid $69,000
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.)
No
1
Transaction
Equipment new
Accumulated depreciation
Answer is not complete.
General Journal
Loss on exchange of assets
Equipment old
Cash
20000
Debit
310,000
Credit
260,000 O
589,000
69,000
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