Problem 23-4 (AICPA Adapted) Wilbur Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Average retail price New equipment: 800,000 600,000 170,000 List price Cash price without trade in Cash payment with trade in Required: 1,000,000 900,000 780,000 Prepare journal entry to record the exchange transaction.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.1P: Purchase-related transactions The following selected transactions were completed by Epic Co. during...
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Problem 23-4 (AICPA Adapted)
Wilbur Company traded a used equipment for a newer model
with a dealer.
Old equipment:
Original cost
Accumulated depreciation
Average retail price
New equipment:
800,000
600,000
170,000
List price
Cash price without trade in
Cash payment with trade in
Required:
1,000,000
900,000
780,000
Prepare journal entry to record the exchange transaction.
Transcribed Image Text:Problem 23-4 (AICPA Adapted) Wilbur Company traded a used equipment for a newer model with a dealer. Old equipment: Original cost Accumulated depreciation Average retail price New equipment: 800,000 600,000 170,000 List price Cash price without trade in Cash payment with trade in Required: 1,000,000 900,000 780,000 Prepare journal entry to record the exchange transaction.
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