Journal entry to record the exchange. Given Information: Cash paid in exchange of chocolate mixing machine is $31,500. Fair value of chocolate mixing machine exchanged is $437,500. Book value of machine is $500,000. Historical cost of the machine is $1,135,000. Accumulated depreciation is $635,000. Fair value of new mixing machine is $469,000. Book value of new machine is $380,000.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Everton Manufacturing reported the following liabilities on its trial balance at December 31, 2021: Accounts payable: $45,000 Unearned revenue: $12,000 Bonds payable, due 2031: $75,000 Salaries payable: $22,000 Note payable, due 2022: $30,000 Note payable, due 2027: $55,000 What amount should be reported as current liabilities on Everton's December 31, 2021 balance sheet? a) $109,000 b) $67,000 c) $77,000 d) $87,000

Can you help me with accounting questions

An asset owned by Carlisle Industries has a book value of $22,500 on December 31, Year 7. The asset has been depreciated at an annual rate of $5,000 using the straight-line method. Assuming the asset is sold on December 31, Year 7 for $19,000, how should the company record the transaction?

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Answer 6

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

Answer 7

Chapter 11, Problem 11.29E

a.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $437,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $469,000.

Book value of new machine is $380,000.

Answer 8

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Answer 9

b.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Answer 10

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Answer 11

c.

To determine

To prepare: Journal entry to record the exchange.

Given Information:

Cash paid in exchange of chocolate mixing machine is $31,500.

Fair value of chocolate mixing machine exchanged is $562,500.

Book value of machine is $500,000.

Historical cost of the machine is $1,135,000.

Accumulated depreciation is $635,000.

Fair value of new mixing machine is $594,000.

Book value of new machine is $380,000

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 11 - Stephen J. Cosgrove is the Former Vice President....Ch. 11 - Prob. 11.2Q Ch. 11 - Prob. 11.3Q Ch. 11 - Prob. 11.4Q Ch. 11 - Will the expense/capitalization choice impact...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - For a long-lived operating asset acquired by...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Solution Summary: The author explains journalizing, the process of recording the transactions of an organization in a chronological order.

Concept explainers

Videos

Want to see the full answer?

Chapter 11 Solutions