On Jan. 1, YR7, Scalia Co. trades equipment that cost $80,000 and has, as of December 31, YR6, accumulated depreciation of $63,000, in exchange for Kennedy Co's piece of similar equipment with a fair value of $42.000. In addition, Scalia receives $8,000 cash from Kennedy. The exchange lacks commercial substance. Original Cost Accumulated Depreciation (as of 12/31/YR6) Fair Market Value 1. Record all journal entries Scalia makes on Jan. 1, YR7. Account Debited [Select] [Select] [Select] Account Credited [Select] Scalia 80,000 63,000 50,000 [Select] Kennedy 60,000 28,000 42,000 Amount Debited [Select) [Select) [Select] Amount Credited [Select] [Select]

On Jan. 1, YR7, Scalia Co. trades equipment that cost $80,000 and has, as of December 31, YR6, accumulated depreciation of $63,000, in exchange for Kennedy Co's piece of similar equipment with a fair value of $42.000. In addition, Scalia receives $8,000 cash from Kennedy. The exchange lacks commercial substance. Original Cost Accumulated Depreciation (as of 12/31/YR6) Fair Market Value 1. Record all journal entries Scalia makes on Jan. 1, YR7. Account Debited [Select] [Select] [Select] Account Credited [Select] Scalia 80,000 63,000 50,000 [Select] Kennedy 60,000 28,000 42,000 Amount Debited [Select) [Select) [Select] Amount Credited [Select] [Select]

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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