On July 1, Twin Pines Co , a water distiller, acquired new bottling equipment with a list price (fair market value) of $687,000 Twin Pines received a trade in allowance (fair market value) of $140,000 on the old equipment of a similar type and paid cash of $547,000 The following information about the old equipment is obtained from the account in the equipment ledger cost, $465,000 accumulated depreciation on December 31, the end of the preceding fiscal year, $303,600 annual depreciation, $27,600 Assume the exchange has commercial substance Question Content Area a Journalize the entry to record the current depreciation of the old equipment to the date of trade in If an amount box does not require an entry, leave it blank blank Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentEquipmentRepairs and Maintenance ExpenseDepreciation Expense Equipment Depreciation Expense Equipment Depreciation Expense Equipment Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentEquipmentRepairs and Maintenance ExpenseAccumulated Depreciation Equipment Accumulated Depreciation Equipment Accumulated Depreciation Equipment Feedback Area Feedback Remember that the amount given for the depreciation on the fixed asset is the annual amount Question Content Area b Journalize the entry to record the exchange transaction on July 1 If an amount box does not require an entry, leave it blank blank Accounts PayableAccumulated Depreciation EquipmentCashDepreciation Expense EquipmentGain on Exchange of EquipmentAccumulated Depreciation Equipment Accumulated Depreciation Equipment Accumulated Depreciation Equipment Accounts ReceivableCashDepreciation Expense EquipmentEquipmentGain on Exchange of EquipmentEquipment Equipment Equipment Accounts PayableCashDepreciation Expense EquipmentGain on Exchange of EquipmentLoss on Exchange of EquipmentLoss on Exchange of Equipment Loss on Exchange of Equipment Loss on Exchange of Equipment Accounts PayableAccumulated Depreciation EquipmentDepreciation Expense EquipmentEquipmentLoss on Exchange of EquipmentEquipment Equipment Equipment Accumulated Depreciation EquipmentCashDepreciation Expense EquipmentGain on Exchange of EquipmentLoss on Exchange of EquipmentCash

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $687,000. Twin Pines received

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $687,000. Twin Pines received a trade-in allowance (fair market value) of $140,000 on the old equipment of a similar type and paid cash of $547,000. The following information about the old equipment is obtained from the account in the equipment ledger: cost, $465,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $303,600; annual depreciation, $27,600. Assume the exchange has commercial substance.

Question Content Area

a. Journalize the entry to record the current depreciation of the old equipment to the date of trade-in. If an amount box does not require an entry, leave it blank.

blank	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentRepairs and Maintenance ExpenseDepreciation Expense-Equipment	Depreciation Expense-Equipment	Depreciation Expense-Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentEquipmentRepairs and Maintenance ExpenseAccumulated Depreciation-Equipment	Accumulated Depreciation-Equipment	Accumulated Depreciation-Equipment

Feedback Area

Feedback

Remember that the amount given for the depreciation on the fixed asset is the annual amount.

Question Content Area

b. Journalize the entry to record the exchange transaction on July 1. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableAccumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Exchange of EquipmentAccumulated Depreciation-Equipment	Accumulated Depreciation-Equipment	Accumulated Depreciation-Equipment
	Accounts ReceivableCashDepreciation Expense-EquipmentEquipmentGain on Exchange of EquipmentEquipment	Equipment	Equipment
	Accounts PayableCashDepreciation Expense-EquipmentGain on Exchange of EquipmentLoss on Exchange of EquipmentLoss on Exchange of Equipment	Loss on Exchange of Equipment	Loss on Exchange of Equipment
	Accounts PayableAccumulated Depreciation-EquipmentDepreciation Expense-EquipmentEquipmentLoss on Exchange of EquipmentEquipment	Equipment	Equipment
	Accumulated Depreciation-EquipmentCashDepreciation Expense-EquipmentGain on Exchange of EquipmentLoss on Exchange of EquipmentCash