A) Waterway, Inc. Buys 1000 video games CDs from the distributor who is discontinuing those games. The purchase price for the lot is 16,000. Waterway will group the CDs into three prize categories for resale as indicated below

B) Novak corporation traded a used truck( cost 30,000, accumulated depreciation 27,000) for a small computer with fair value of $4950. Novak also paid $750 in the transaction. Prepare the journal entry to record the exchange assuming the exchange lacks commercial substances

Please, write the answers of both questions separately.

Waterway. Inc buys 1,000 video game CDs from a distributor who is discontinuing those games. The purchase price for the lot is $16,000. Waterway will group the CDs into threeprice categories for resale, as indicated below. Determine the cost per CD for each group, using the relative sales value method. (Do not round ratios for computational purposes. Round answers to 2 decimal places, es. 15.25.) Novak Corporation traded a used truck (cost $30,000, accumulated depreciation $27,000 ) for a small computer with a fair value of $4,950. Novak also paid $750 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance. (Credit account titles are automatically indented when 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.)