Willis Company trades in a printing press for a newer model. The cost of the old printing press was $62,000, and accumulated depreciation up to the date of the trade - in is $46,000. The company also pays $45,000 cash for the newer printing press. The fair market value of the newer printing press is $70,000. The journal entry to acquire the new printing press will required a debit to Printing Press for: A. $45,000 B. $108,000. C. $70,000. D. $62,000

Q: Garcia Co. owns equipment that costs $77,300, with accumulated depreciation of $42,800. Garcia sells…

A: Net book value of the equipment = Cost - accumulated depreciation = $77,300 - $42,800 = $34,500…

Q: On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was…

A: Cost of machinery includes all cost that incurred from purchasing to bringing the assets to the…

Q: Champion Industries exchanged a dust-scrubbing piece of equipment for another version of the same…

A: Exchange of assets means when one asset is being exchanged with another asset. Whether commercial…

Q: Sheffield Corp. sells office equipment on July 31, 2022, for $19,200 cash. The office equipment…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Meeker Inc. trades its used machine for a new model at Grand Inc.  The used machine has a book value…

A:

Q: Mariot trades in its old equipment (with the following carrying values) for new equipment. Mariot…

A: a transaction in which one party or one person gives another person ownership, right or control of…

Q: Liam acquired a machinery purchased for P 1,100,000.00 and paid for transportation charge of P…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Brown Company contracts with Sebastian Company to exchange refrigerated trucks. Brown Company will…

A: An exchange is said to have commercial substance if the risk, timing and amount of cash flows…

Q: Windsor Ltd. traded a used truck (cost $31,100, accumulated depreciation $27,990, fair value $1,720)…

A: Cost of new truck can be arrived at in the following manner:Cost of new truck = Amount paid for new…

Q: European University of Lefke has an old bus that originally cost $20000 and has an accumulated…

A: Trade-in allowance is a reduction in the sale price of an asset given by the seller when buyer is…

Q: Rizio Company purchases a machine for $11,200, terms 1/10, n/60, FOB shipping point. Rizio paid…

A: All costs which are incurred from the time of purchase of machine up to the point of installation to…

Q: Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,000.…

A: The objective of the question is to determine the cash amount Willis Bus Service had to pay to…

Q: During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of…

A: Exchange of assets refers to transactions where one entity swaps one asset for another. Accounting…

Q: he purchase price of a front vith its purchase, is $117,450. The life of the loader is 6 years, at…

A: The equipment is going to be decrease in value and with use of equipment annually the value of…

Q: Queen Inc. purchased a machine on June 1 for $70000, paying cash. The company also paid $600 for…

A: Lets understand the basics.As per IAS 16, "Property plant and equipment", asset should be recorded…

Q: Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: 020, Staged Home Ltd. completed the following transactions involving delivery trucks:    July   5…

A: The journal entries are prepared to record day to day transactions of the business on regular basis.

Q: On January 1, 2020, Techno Company sold a machine for RO15,000 cash. The Machine originally cost RO…

A: Solution:- Preparation of Journal entry as follows under:-

Q: Blue Spruce Inc. trades its used machine (cost $11,900 less $4,100 accumulated depreciation) for a…

A: Derecognized Old Assets :When assets are exchanged, the assets given up are derecognized at book…

Q: Rizio Company purchases a machine for $9,600, terms 1/10, n/60, FOB shipping point. Rizio paid…

A: Cost of machine includes the purchase price , freight and other ancillary costs incurred to make it…

Q: Rizio Company purchases a machine for $10,000, terms 1/10, n/60, FOB shipping point. Rizio paid…

A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…

Q: A machine cost $229,000, has annual depreciation expense of $45,800, and has accumulated…

A: working notes    1. ($45,800× 3/12) = $11450   2. ($114,500 +$11450) = $125950

Q: Rizio Company purchases a machine for $14,400, terms 1/10, n/60, FOB shipping point. Rizio paid…

A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…

Q: Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb…

A: The objective of the question is to record the exchange of a machine owned by Caleb Company for a…

Q: Willis Bus Service traded in a used bus for a new one. The original cost of the old bus was $52,900.…

A: To calculate the amount of cash Wills had to pay to acquire the new bus, we need to consider the…

Q: A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in…

A: The term profit and loss (P&L) statement refers to a budget that summarizes the revenues, costs,…

Q: Traded the company car (Automobile) for a newer one at Plume Motors. The old car originally cost…

A: Trade in proceeds  Dr.           $5500 Accumulated depreciation.          Dr           $19000…

Q: In October, Dean Company exchanged an old packing machine costing P240,000 and 50% depreciated, for…

A: Whenever a property is sold more than its carrying amount or value, a profit or gain on the sale of…

Q: Larkspur Ltd. traded a used truck (cost $30,200, accumulated depreciation $27,180, fair value…

A: Journal entries are used by commercial organizations to document their financial transactions in…

Q: 032

A: Particular Amount Gross invoice $54,400 Sale tax $3,520 Cash discount ($1,088) Freight…

Q: XL Co. owns a machine purchased a machine 4 years ago for OMR 80,000. The accumulated depreciation…

A:

Q: , the acquisition cost of the machine must be

A: Acquisition can be defined as non regular business activity, were one business entity takes up the…

Q: During the current year, Marshall Construction trades an old crane that has an original cost…

A: a) i) ii) Marshall Construction should record the same entry as in part (a) above.

Q: Pointer Company buys a piece of property in north Toronto th

A: As per standard accounting practices when we purchase an asset , all…

Q: On January 2, 2023, Direct Shoes Inc. disposed of a machine that cost $94, 000 and had been…

A: (a) Journal entry if the machine was sold for $42,500 cash:  General JournalDebit $Credit…

Q: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: In 2022, Leo construction traded in a light duty pickup truck that had a book value of $18,000. A…

A: In 2022, Leo construction bought a light duty pickup truck having a fair market value of $55,236.…