Flint Company purchased an electric press on June 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new press Cash paid Cost of old press (10-year life, $1,000 residual value) Accumulated depreciation-old press (straight-line) Secondhand market value of old press $24,700 13,100 33,700 26,700 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Flint's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (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 O for the amounts.)

Flint Company purchased an electric press on June 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new press Cash paid Cost of old press (10-year life, $1,000 residual value) Accumulated depreciation-old press (straight-line) Secondhand market value of old press $24,700 13,100 33,700 26,700 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Flint's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (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 O for the amounts.)

Name: Flint Company purchased an electric press on June 30, 2017, by tradin
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Description: Flint Company purchased an electric press on June 30, 2017, by trading in its old gas model and paying the balance in cash. Thefollowing data relate to the purchase.List price of new pressCash paidCost of old press (10-year life, $1,000 residual val

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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