Question
On the first day of the fiscal year, a new walk-in cooler with a list price of $47,200 was acquired in exchange for an old
On the first day of the fiscal year, a new walk-in cooler with a list price of $47,200 was acquired in exchange for an old cooler and $40,300 cash. The old cooler had a cost of $41,000 and accumulated depreciation of $38,000. Assume the transaction has commercial substance.
a. Determine the gain to be recorded on the exchange.
Journalize the entry for the exchange. If an amount box does not require an entry, leave it blank.
| Cash, Equipment (new), Gain on Exchange of Equipment, Interest Revenue, Loss on Exchange of Equipment | |||
| Accumulated Depreciation, Cash, Depreciation Expense, Gain on Exchange of Equipment, Interest Revenue | |||
| Accumulated Depreciation, Equipment (new), Equipment (old), Interest Revenue, Loss on Exchange of Equipment | |||
| Accumulated Depreciation, Equipment (new), Gain on Exchange of Equipment, Interest Revenue, Loss on Exchange of Equipment | |||
| Accumulated Depreciation, Cash, Depreciation Expense, Interest Revenue, Loss on Exchange of Equipment |
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
