Equipment with an estimated market value of $29,467 is offered for sale at $47,671.The equipment is acquired for $16,800 in cash and a note payable of $24,414 due in30 days. The amount used in the buyer's accounting records to record this acquisitionisOa. $16,800Ob. $41,214Oc. $29,467Od. $46,267

Equipment: It consists of the things including machines or tools that are used for a specific…

Answered: Equipment with an estimated market…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing $9,118, installation costs of $4,677, and special acquisition fees of $31,965 would be journalized with a debit to the asset account for Oa. $54,112 0b. 590.754 O c. $136,514 O d. $44,994The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing $9,118, installation costs of $4,677, and special acquisition fees of $31,965 would be journalized with a debit to the asset account for Oa. $54,112 0b. 590.754 O c. $136,514 O d. $44,994.
Lecherous Company traded a used equipment for a newer Old equipment: Original cost Accumulated depreciation Fair value – unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction.
Disposal of fixed asset Instructions Chart of Accounts First Questions Journal Instructions First Questions X Journal Equipment acquired on January 6 at a cost of C. Assuming that the equipment was sold on January 3 of Year 4 for $379,920, journalize the entry to record the sale. Refer to the Chart of Accounts for exact wording of $459,240 has an estimated useful life of 19 year a. What was the annual amount of depreciation for account titles. and an estimated residual value of $62,805. the Years 1-3 using the straight-line method of depreciation? PAGE 1 a. What was the annual amount of Year 1 $ JOURNAL depreciation for the Years 1-3 using the depreciation ACCOUNTING FOUATION. straight-line method of depreciation? DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY expense b. What was the book value of the 1 Year 2 $ equipment on January 1 of Year 4? 2 depreciation c. Assuming that the equipment was sold expense 3 on January 3 of Year 4 for $379,920, Year 3 2$ 4…
Subject : Accounting
Rahul
16
An asset's book value is $18,600 on December 31, Year 5. Assuming the asset is sold on December 31, Year 5 for $14,400, the company should record: Multiple Choice A gain on sale of $13,200. Neither a gain nor a loss is recognized on this transaction. A loss on sale of $4,200. A loss on sale of $13,200. A gain on sale of $4,200.
A fixed asset with a cost of $24,737 and accumulated depreciation of $22,263 is traded for a similar asset priced at $60,057 (fair market value) in a transaction with a commercial substance. Assuming a trade-in allowance of $4,264, at what cost will the new equipment be recorded in the books? a.$4,264 b.$1,790 c.$60,057 d.$20,473
Acquisition of Equipment - A machine cost $1,200,000, has annual depreciation of $200,000, and has accumulated depreciation of $850,000 on December 31, 2017. On April 1, 2018, when the machine has a fair value of $275,000, it is exchanged for a machine with a fair value of $1,350,000 and the proper amount of cash is paid. The exchange had commercial substance. Required: Prepare the entry to record the acquisition of the new equipment.
26
Subject-account
jlp.3

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