On the first day of the fiscal year, a new walk-in cooler with a list price of $51,300 was acquired in exchange for an old cooler and $40,600 cash. The old cooler had a cost of $44,000 and accumulated depreciation of $37,500.Assume the transaction has commercial substance.a. Determine the gain to be recorded on the exchange.$fill in the blank 4a5f8d00f04b05f_1b. Journalize the entry to record the exchange. If an amount box does not require an entry, leave it blank. Equipment (new) fill in the blank b9746ffc1fed022_2fill in the blank b9746ffc1fed022_3 Accumulated Depreciation fill in the blank b9746ffc1fed022_5fill in the blank b9746ffc1fed022_6 Equipment fill in the blank b9746ffc1fed022_8fill in the blank b9746ffc1fed022_9 Gain on Exchange of Equipment fill in the blank b9746ffc1fed022_11fill in the blank b9746ffc1fed022_12 Cash fill in the blank b9746ffc1fed022_14fill in the blank b9746ffc1fed022_15

When new assets has been purchased and old assets has been given in exchange , then we need to find…

Answered: On the first day of the fiscal year, a…

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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On the first day of the fiscal year, a new walk-in cooler with a list price of $51,300 was acquired in exchange for an old cooler and $40,600 cash. The old cooler had a cost of $44,000 and accumulated depreciation of $37,500.

Assume the transaction has commercial substance.

a. Determine the gain to be recorded on the exchange.
$fill in the blank 4a5f8d00f04b05f_1

b. Journalize the entry to record the exchange. If an amount box does not require an entry, leave it blank.

Equipment (new)	fill in the blank b9746ffc1fed022_2	fill in the blank b9746ffc1fed022_3
Accumulated Depreciation	fill in the blank b9746ffc1fed022_5	fill in the blank b9746ffc1fed022_6
Equipment	fill in the blank b9746ffc1fed022_8	fill in the blank b9746ffc1fed022_9
Gain on Exchange of Equipment	fill in the blank b9746ffc1fed022_11	fill in the blank b9746ffc1fed022_12
Cash	fill in the blank b9746ffc1fed022_14	fill in the blank b9746ffc1fed022_15

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