Homework Help is Here – Start Your Trial Now!
Business
Accounting
Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done

Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Am. 139.

Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done
Transcribed Image Text:Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS