cost of sao,000 and on which there is accumulated depreciation of s55,000 (nduding deprediion for the current year to date) is exchanged for similar machinery. Asnume that the transaction has commerdal substance. For fieancial reporting purposes, present entries to record the exchange of the machinery under each of the following asumptions: a. Price of new, $120,000; trade-in allowance on old, $4,000; balance paid in cash. If an amount bx does not repure an entry, leave it blank. 5. Price of new, $120,000; trade-in allowance on old, $34,000; balance paid in cash. If an amount bax does not require an entry, leave = blank.
cost of sao,000 and on which there is accumulated depreciation of s55,000 (nduding deprediion for the current year to date) is exchanged for similar machinery. Asnume that the transaction has commerdal substance. For fieancial reporting purposes, present entries to record the exchange of the machinery under each of the following asumptions: a. Price of new, $120,000; trade-in allowance on old, $4,000; balance paid in cash. If an amount bx does not repure an entry, leave it blank. 5. Price of new, $120,000; trade-in allowance on old, $34,000; balance paid in cash. If an amount bax does not require an entry, leave = blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Machinery acquired at a cost of s80,000 and on which there is acoumulated deprecation of $55,00e (incuding depredation for the
current year to date) is exchanged for similar machinery. Assaume that the transaction has commerdal subtance. For financial reporting
purposes, present entries to record the exchange of the machinery smder each of the following anumptions:
a. Price of new, $120,000; trade-in allowance on old, $4,000; balance paid in cash, If an amount box does not require an entry, leave it
blank.
b. Price of new, $120,000; trade-in allowance on old, $34,000; balance paid in cash. If an amount box does not require an entry, leave
it blank.
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