Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $224,000 (original cost of $484.000 less $260,000 in accumulated depreciation) and its fair value was $210,000. Cedric paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction General Journal Equipment new Accumulated depreciation Loss on exchange of assets Equipment old Cash Debit Credit
Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $224,000 (original cost of $484.000 less $260,000 in accumulated depreciation) and its fair value was $210,000. Cedric paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list View journal entry worksheet No 1 Transaction General Journal Equipment new Accumulated depreciation Loss on exchange of assets Equipment old Cash Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Abhaliya
Transcribed Image Text:Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $224,000 (original
cost of $484,000 less $260,000 in accumulated depreciation) and its fair value was $210,000. Cedric paid $64,000 to complete the
exchange which has commercial substance.
Required:
Prepare the journal entry to record the exchange.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
View transaction list View journal entry worksheet
No
1
Transaction
Seved
General Journal
Equipment-new
Accumulated depreciation
Loss on exchange of assets
Equipment-old
Cash
Debit
Credit
Hel
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