Problem 23-4 (AICPA Adapted)Wilbur Company traded a used equipment for a newer modelwith a dealer.Old equipment:Original costAccumulated depreciationAverage retail priceNew equipment:800,000600,000170,000List priceCash price without trade inCash payment with trade inRequired:1,000,000900,000780,000Prepare journal entry to record the exchange transaction.

Step 1:To record exchange transaction where willbur company trades it's used equipment for a newer…

Answered: Problem 23-4 (AICPA Adapted) Wilbur…

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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Lecherous Company traded a used equipment for a newer Old equipment: Original cost Accumulated depreciation Fair value – unknown 1,000,000 600,000 New equipment: List price Cash price without trade in Cash payment with trade in 1,600,000 1,400,000 980,000 Required: Prepare journal entry to record the exchange transaction.
P1,000,000 for another used equipment with fair v Prepare journal entries to record the transactions. Smile Company exchanged used equipment for anofe equipment of Frown Company. The following informata accumulated depr fair PL,200,000. The exchange is nonmonetary. Prob Mello of P2 Required: Price Chars Value Insur Moto Problem 23-7 (ACP) Smile Company exchanged used equipment for s equipment of Frown Company. The following inform pertains to the exchange: Total Less Cash Smile Frow Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,00 1,750,00 500,000 The P20 refu Required: Re Prepare journal entry on the books of Smile and Frown. Pre 654
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Statement 1: When change in the estimated life of depreciable asset occurs at the time of an intercompany sale, the treatment is different than if the change occurred while the asset remained on the books of the selling affiliate. Statement 2: The branch reports ending inventory of $1,500 consisting of goods from the home office billed at 125% above cost. The related "allowance" account in the home office books must have a credit balance of $300. Statement 3: In the financial settlement of a contingent consideration classified as financial liability, the amount shall be remeasured at fair value with any gain or loss included in a profit or loss. Statement 4: Intercompany sales of inventory necessitate adjustments to the calculation of the distribution of income to the controlling interests. Which statement/s is/are true?
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Recording an Asset Exchange Science Center trades an electron microscope with an original cost of $480,000 and accumulated depreciation of $192,000 for new optical equipment. The old equipment has a fair market value of $384,000 at trade-in time, and Science Center receives $72,000 cash on the trade-in. The transaction lacks commercial substance. Prepare the entry for Science Center to record the exchange. Note: Round your answers to the nearest whole number. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). Account Name Dr. Cr. Cash Answer Answer Equipment (new) Answer Answer AnswerCashPrepaid InsuranceEquipmentBuildingLandConstruction in ProcessAccumulated DepreciationAccounts PayableProperty Tax PayableAsset Retirement ObligationNote PayableDiscount on Note PayableCommon StockPaid-in Capital in Excess of Par—Common StockContribution…
Equipment with an estimated market value of $29,149 is offered for sale at $45,171. The equipment is acquired for $16,004 in cash and a note payable of $21,540 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is Oa. $29,149 Ob. $37,544 Oc. $45,153 Od. $16,004
Equipment with an estimated market value of $27,113 is offered for sale at $45,619. The equipment is acquired for $15,304 in cash and a note payable of $20,994 due in 30 days. The amount used in the buyer's accounting records to record this acquisition is a.$42,417 b.$15,304 c.$36,298 d.$27,113
A company exchanged old equipment for new equipment in two exchange transactions. Each transaction has commercial substance. Old Equipment Cash Book Value Fair Value Received $ 73,800 $ 80,800 $ 12,100 The company would record the new equipment at: Multiple Choice $68,700. $70,200. $72,950. $56,200.

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