Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets. C ommercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance. To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Answer 1

Question

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2024. The units have a list price of $750 each, but Thomas was given a 20% trade discount. The terms of the sale were 3/10 , n/30 . 3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2024, assuming that the net method of accounting for cash discounts is used. 3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2024, assuming that the net method of accounting for cash discounts is used.

Burlington manufacturing complete solution general accounting question

Answer 2

Question

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Answer 3

Question

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Answer 4

Question

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Answer 5

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

Answer 6

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

Answer 7

Chapter 9, Problem 9.28E

1.

To determine

Exchange of plant assets: It refers to the purchase of new plant assets in exchange of old plant assets.

Commercial substance: It means that the exchange of the plant asset cause changes in the future cash flows as more revenue will generate from the new plant asset due to an increase in its productivity. Thus, if the revenue earned or expenses incurred changes in the future due to the exchange of plant assets, then it will be referred as the exchange has a commercial substance.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

Answer 8

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

Answer 9

2.

To determine

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author explains the accounting equation for Bank C's trade-in of old fixtures for new ones.

To record: the journal entry of Bank C’s trade-in of old fixtures for new ones.

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Chapter 9 Solutions