Cedric Company recently traded in an older model of equipment for a new model. The old...

Question

Question

Cedric Company recently traded in an older model of equipment for a new model. The old models book value was $270,000 (origi

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Old book value of Equipment = $270,000

Amount paid to buy new equipment = $70,000

Cost of New Equipment = Fair value of old equipment +cash paid= $300,000 + $70,000 = $370,000.

Gain on Exchange = $300,000 - $270,000 = $30,000

Date	Account Details & Explanation	Debit	Credit
1	Equipment-new	$370,000
	Accumulated Depreciation	$320,000
	Equipment-old		$590,000
	Gain		$30,000
	Cash		$70,000

Add a comment

Answer 2

Similar Homework Help Questions

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $270,000 (...

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $270,000 (original cost of $590,000 less $320,000 in accumulated depreciation) and its fair value was $300,000. Cedric paid $70,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) The Bronco Corporation exchanged land...
Cedric Company recently traded in an older model of equipment for a new model. The old...

Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $198,000 (original cost of $438,000 less $240,000 in accumulated depreciation) and its fair value was $220,000. Cedric paid $62,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (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...
Cedric Company recently traded in an older model of equipment for a new model. The old...

Cedric Company recently traded in an older model of equipment for a new model. The old model's book value was $191,000 (original cost of $421,000 less $230,000 in accumulated depreciation) and its fair value of the old equipment is $180,000. Cedric paid $61,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction...

Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $288,000 (original cost of $628,000 less $340,000 in accumulated depreciation) and its fair value was $320,000. Cedric paid $72,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the exchange of assets. Note: Enter...
Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $389,000 (original cost of $799,000 less $410,000 in accumulated depreciation) and its fair value of the old equipment is $360,000. Cedric paid $79,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry...
Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $315,000 (original cost of $685,000 less $370,000 in accumulated depreciation) and its fair value was $350,000. Cedric paid $75,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the exchange of...

Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $191,000 (original cost of $421,000 less $230,000 in accumulated depreciation) and its fair value of the old equipment is $180,000. Cedric paid $61,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $252,000 (original cost of $552,000 less $300,000 in accumulated depreciation) and its fair value was $280,000. Cedric paid $68,000 to complete t

Cedric Company recently traded in an older model of equipment for a new model. The old model’s book value was $252,000 (original cost of $552,000 less $300,000 in accumulated depreciation) and its fair value was $280,000. Cedric paid $68,000 to complete the exchange which has commercial substance. Required:Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Cedric Company recently traded in an older model computer for a new model. The old model’s...

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.

Cedric Company recently traded in an older model computer for a new model. The old model’s...

Cedric Company recently traded in an older model computer for a new model. The old model’s book value was $261,000 (original cost of $571,000 less $310,000 in accumulated depreciation) and its fair value was $290,000. Cedric paid $69,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange.

Cedric Company recently traded in an older model of equipment for a new model. The old...

Homework Answers