Mcarthur inc has negotiated the purchase of a new piece of

Assignment Help Accounting Basics

Reference no: EM13484164

McArthur Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $7,000 plus trade-in, f.o.b. factory. McArthur Inc. paid $7,000 cash and traded in used equipment. The used equipment had originally cost $62,000; it had a book value of $42,000 and a secondhand fair value of $45,800, as indicated by recent transactions involving similar equipment. Freight and installation charges for the new equipment required a cash payment of $1,100.

(a) Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(b) Assuming the same facts as in (a) except that fair value information for the assets exchanged is not determinable. Prepare the general journal entry to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM13484164

Questions Cloud

The fasb asc paragraph 810-10-45-16 states : the fasb asc paragraph 810-10-45-16 states acirceurooeligthe noncontrolling interest shall be reported in the

If the price of the stock increases to 50 at expiration : the following questions appeared in past cfa level i examinations.a. which one of the following comparative statements

Chopin engineering corporation purchased conveyor equipment : chopin engineering corporation purchased conveyor equipment with a list price of 15000. presented below are three

Renbud computer services co rcs specializes in customized : renbud computer services co. rcs specializes in customized software development for the broadcast and

Mcarthur inc has negotiated the purchase of a new piece of : mcarthur inc. has negotiated the purchase of a new piece of automatic equipment at a price of 7000 plus trade-in f.o.b.

Mince companys condensed financial statements appear : mince companys condensed financial statements appear belowmince companybalance sheetdecember 31cash and marketable

An executive compensation scheme might provide a manager a : an executive compensation scheme might provide a manager a bonus of 1000 for every dollar by which the companys stock

If the dollar increases in value relative to foreign : a suppose that government spending is raised at the same time the money supply is lowered. what will happen to the

On december 31 2013 the board of directors is considering : ritz company had the following stock outstanding and retained earnings at december 31

User Account

All Pages