Windsor Ltd. traded a used truck (cost $31,100, accumulated depreciation $27,990, fair value $1,720) for a new truck. Windsor did look up the value of its used truck and determined its fair value at the date of the trade is $1,720. The list price of the new truck is $36,530 and the trade-in allowance given on the trade was $4,830. If Windsor paid $31,700, what should be the amount used as the cost of the new truck? The cost of the new truck Prepare Windsor's entry to record the exchange. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Account Titles and Explanation Vehicles Accumulated Depreciation - Vehicles Loss on Disposal of Vehicles Vehicles 33420 Cash Debit 33420 27990 1390 Credit 31100 31700

Windsor Ltd. traded a used truck (cost $31,100, accumulated depreciation $27,990, fair value $1,720) for a new truck. Windsor did look up the value of its used truck and determined its fair value at the date of the trade is $1,720. The list price of the new truck is $36,530 and the trade-in allowance given on the trade was $4,830. If Windsor paid $31,700, what should be the amount used as the cost of the new truck? The cost of the new truck Prepare Windsor's entry to record the exchange. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Account Titles and Explanation Vehicles Accumulated Depreciation - Vehicles Loss on Disposal of Vehicles Vehicles 33420 Cash Debit 33420 27990 1390 Credit 31100 31700

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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