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Your company has acquired several pieces of equipment. Prepare the journal entry for the following transactions. You bought NEW equipment (equipment A) which had a market value of $32,000 and exchanged OLD equipment (equipment B) which cost $50,000, had a book value of $30,000, and a market value of $28,000 plus you paid $3,000 in cash. This transaction А. LACKS commercial substance. You bought NEW equipment (equipment C) which had a market value of $11,000 and oxohoncod OL D oguinmont (oouinmont D) which gost c20. 000 hod o book vo1ue of B.

Your company has acquired several pieces of equipment. Prepare the journal entry for the following transactions. You bought NEW equipment (equipment A) which had a market value of $32,000 and exchanged OLD equipment (equipment B) which cost $50,000, had a book value of $30,000, and a market value of $28,000 plus you paid $3,000 in cash. This transaction А. LACKS commercial substance. You bought NEW equipment (equipment C) which had a market value of $11,000 and oxohoncod OL D oguinmont (oouinmont D) which gost c20. 000 hod o book vo1ue of B.

FINANCIAL ACCOUNTING
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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need help with question A & B thanks 

Your company has acquired several pieces of equipment. Prepare the journal entry for the following transactions. You bought NEW equipment (equipment A) which had a market value of $32,000 and exchanged OLD equipment (equipment B) which cost $50,000, had a book value of $30,000, and a market value of $28,000 plus you paid $3,000 in cash. This transaction А. LACKS commercial substance. You bought NEW equipment (equipment C) which had a market value of $11,000 and exchanged OLD equipment (equipment D) which cost $20,000, had a book value of $12,000, and a market value of $13,000 plus you RECEIVED $2,000 in cash. This В. transaction HAS commercial substance. You bought equipment (equipment E) and paid for it with 3,000 shares of your $10 par common stock which has a book value of $19 per share and a market value of $26 per С. share. You bought equipment (equipment F) and signed a 6% note in which you agreed to make 48 monthly payments of $1,521 at the end of each month. Record (1) the purchase and (2) the payment at the END of the first month. D. B.
Transcribed Image Text:Your company has acquired several pieces of equipment. Prepare the journal entry for the following transactions. You bought NEW equipment (equipment A) which had a market value of $32,000 and exchanged OLD equipment (equipment B) which cost $50,000, had a book value of $30,000, and a market value of $28,000 plus you paid $3,000 in cash. This transaction А. LACKS commercial substance. You bought NEW equipment (equipment C) which had a market value of $11,000 and exchanged OLD equipment (equipment D) which cost $20,000, had a book value of $12,000, and a market value of $13,000 plus you RECEIVED $2,000 in cash. This В. transaction HAS commercial substance. You bought equipment (equipment E) and paid for it with 3,000 shares of your $10 par common stock which has a book value of $19 per share and a market value of $26 per С. share. You bought equipment (equipment F) and signed a 6% note in which you agreed to make 48 monthly payments of $1,521 at the end of each month. Record (1) the purchase and (2) the payment at the END of the first month. D. B.
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