addition, Kelso paid £45, 500 cash for the new truck. The exchange lacked commercial substance. What journal entry should kelso make to record this exchange?
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Am. 113.
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- On March 31, 2019, ABC Enterprises traded in an old machine having a carrying amount of P1,600,000 and paid a cash difference of P600,000 for a new machine having a total cash price pf P2,000,000. On March 31, 2019, what amount of loss should ABC recognize on this exchange?On March 1, 2019, Extreme Company exchanged an old machine having a cost of P450,000 and accumulated depreciation of P100,000 for another machine having a fair market value of P300,000. Extreme Company has to pay P72,000 to even up the trade. Immediately after the exchange. Extreme company determined that the cash flows of the machine received differ from the cash flows of the machine transferred. 51. What is the cost of the machine in the books of Extreme? a. P280,000 b. P300,000 c. P440,000 d. P600,000 52. What amount of loss should the company recognize on the exchange? a. None b. P50,000 c. P122,000 d. P150,000Pearl’s Delivery Company and Martinez’s Express Delivery exchanged delivery trucks on January 1, 2020. Pearl’s truck cost €22,500. It has accumulated depreciation of €15,500 and a fair value of €3,300. Martinez’s truck cost €8,500. It has accumulated depreciation of €6,800 and a fair value of €3,300. The transaction has commercial substance. Journalize the exchange for Pearl’s Delivery Company Account Titles and Explanation Debit Credit Equipment Accumulated Depreciation-Equipment Loss on Disposal of Plant Assets Equipment please make sure the answer is correct 100%
- On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset $ 155,000 75,000 71,500 To equalize the exchange, Phifer paid Robers $8,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheetOn December 30, 2019, Machine M with a carrying amount of 120,000 (Cost 400,000) and a fair value of P100,000 was exchanged for a similar asset with a fair value of 150,000 . In addition , Charie paid 10, 000 to acquire the new machine . The exchange was recorded by a debit to Machinery and a credit to cash for 20,000 What is the correct cost of the PPE received ?On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Robers’ Asset Phifer’s Asset Original cost $ 215,000 $ 235,000 Accumulated depreciation 131,000 139,000 Fair value 103,500 79,500 To equalize the exchange, Phifer paid Robers $24,000 in cash. Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
- Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in allowance and paying the remaining $83,000 in cash. The old tractor had cost $96,000 and had accumulated depreciation of $52,500. Answer the following questions assuming the exchange has commercial substance. 1. What is the book value of the old tractor at the time of exchange? 2. What is the loss on this asset exchange? 3. What amount should be recorded (debited) in the asset account for the new tractor?On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of theexchange are as follows:Robers’ Asset Phifer’s AssetOriginal cost $120,000 $140,000Accumulated depreciation 55,000 63,000Fair value 75,000 70,000To equalize the exchange, Phifer paid Robers $5,000 in cash.Required:Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies.Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine has a estimated fair market of $36,000. The transaction has commercial substance. Regarding the journal entry to record the exchange, what value will be assigned to the delivery truck? O 36,000 O 44,000 O 54,000 O 34,000 Question 17 The cost of training employees to operate newly acquired machinery are usually capitalized as part of the acquisition value of the asset. O True
- Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value was $200,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange.Gandalf Engineering had a large Ford delivery truck it traded in for a new Mack truck. The relevant information concerning the two trucks, on May 15, 2021, the date of exchange, follows: Cost of old Ford truck Accumulated depreciation of old Ford truck List price of the new Mack truck Trade-in allowance given on the exchange Fair value of the old Ford truck $43,100 33,300 45,900 14,000 11,000 Prepare the journal entry to record the purchase of the Mack truck using the Ford truck as a trade in. Gandalf paid the appropriate amount of cash for the remaining balance on the exchange. (Credit account titles are automatically indented when the 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)A company recently traded in an older model of equipment for a new model. The old model's book value was $216,000 (original cost of $476,000 less $260,000 in accumulated depreciation) and its fair value was $240,000. The company paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet