Prepare the general journal entry to record this

Assignment Help Accounting Basics

Reference no: EM13391471

Dean Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $16,000 plus trade-in, f.o.b. factory. Dean Inc. paid $16,000 cash and traded in used equipment. The used equipment had originally cost $71,000; it had a book value of $32,500 and a secondhand market value of $36,800, as indicated by recent transactions involving similar equipment.

Freight and installation charges for the new equipment required a cash payment of $2,500.

Instructions

(a) Prepare the general journal entry to record this transaction, assuming that the exchange has commercial substance.

(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.

Reference no: EM13391471

Questions Cloud

What do you expect will occur to gold prices how would the : historically investors have considered gold commodities to be a good investment to preserve wealth in times of

The chief at the ultrasound division of the : exercise 9.1 the chief at the ultrasound division of the radiologydepartment in a community hospital would like to

Analyze kodakrsquos horizontal and vertical integration : nbspa new strategy for kodak1. establish five 5 key objectives for eastman kodak that encompasses the operational

Draw cheese market for united states showing world price as : draw the cheese market for the united states showing the world price as the price for this market. how much cheese does

Prepare the general journal entry to record this : dean inc. has negotiated the purchase of a new piece of automatic equipment at a price of 16000 plus trade-in f.o.b.

The marketing research approach you would use to develop : create a new product or service for an existing organization. this product or service will be the basis for your

Abraham unseals his estimate of the value of the collection : the center city anuraphilic frog lovers society has fallen on hard times. abraham bobby and charlene are the only

Utilize supply and demand analysis to predict how the : suppose a new discovery in computer manufacturing has just made computer production cheaper. also the popularity and

Avedo group has been in its factory for 20 years although : avedo group has been in its factory for 20 years. although the factory is quite functional numerous repair costs are

User Account

All Pages