Whispering Winds Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,900 (cost $61,900 less accumulated depreciation $30,000). Its fair value is $38,500, and cash of $7,300 is paid. Prepare the entry to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Equipment Accumulated Depreciation-Equipment Cost of Goods Sold Cash Debit 31900 30000 7300 Credit 61900 7300

Whispering Winds Company exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $31,900 (cost $61,900 less accumulated depreciation $30,000). Its fair value is $38,500, and cash of $7,300 is paid. Prepare the entry to record the exchange. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment.) Account Titles and Explanation Equipment Accumulated Depreciation-Equipment Cost of Goods Sold Cash Debit 31900 30000 7300 Credit 61900 7300

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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