Grouper Shipping exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is €31,200 (cost €62,000 less accumulated depreciation €30,800). Its fair value is €36,500, and cash of €5,700 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Report old equipment and new equipment separately. If no entry is required, select ""No Entry"" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment Debit 36500 Credit
Grouper Shipping exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is €31,200 (cost €62,000 less accumulated depreciation €30,800). Its fair value is €36,500, and cash of €5,700 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Report old equipment and new equipment separately. If no entry is required, select ""No Entry"" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation Equipment Debit 36500 Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Grouper Shipping exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is
€31,200 (cost €62,000 less accumulated depreciation €30,800). Its fair value is €36,500, and cash of €5,700 is paid.
Prepare the entry to record the exchange, assuming the transaction has commercial substance. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. Report old equipment and new equipment separately. If no entry is required,
select ""No Entry"" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Equipment
Accumulated Depreciation-Equipment
Equipment
Cash
Gain on Disposal of Plant Assets
Debit
36500
30800
5700
Credit
62000
6000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91605255-8a3f-4f90-b4a0-4e9393375805%2F87d8c09f-692a-41e1-9bea-6cd692bbfbc2%2F1nmyz4q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Grouper Shipping exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is
€31,200 (cost €62,000 less accumulated depreciation €30,800). Its fair value is €36,500, and cash of €5,700 is paid.
Prepare the entry to record the exchange, assuming the transaction has commercial substance. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. Report old equipment and new equipment separately. If no entry is required,
select ""No Entry"" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Equipment
Accumulated Depreciation-Equipment
Equipment
Cash
Gain on Disposal of Plant Assets
Debit
36500
30800
5700
Credit
62000
6000
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