Why gold will use newly acquired machine in same manner

Assignment Help Accounting Basics
Reference no: EM13488348

On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also received $7,000 cash from Cowboy Company.Gold's machine had an original cost of $70,000, accumulated depreciation to date of $34,500, and a fair market value of $60,000. Cowboy's machine had a book value of $45,000 and a fair value of $53,000.


Prepare the necessary journal entry by Gold Company to record this transaction assuming

a. Gold will use the newly acquired machine in the same manner as the old one.
b. Gold's use of the new machine will be substantially different from the old one.


Reference no: EM13488348

Previous Q& A

  Decision-making process

The chief executive officer (CEO), realizes that you do not have much practice in this higher level, decision-making process and has asked you to write a memo describing your understanding of how to make important decisions.

  Evaluate sources of finance for the digilink project

Evaluate appropriate sources of finance for the DigiLink project in terms of suitability and their respective advantages and disadvantages.

  Briefly explain in terms of structure and basicity

Briefly explain in terms of structure, basicity, and solubility why Novocain® is usually administered by injection whereas benzocaine is typically used in salves.

  What is wagners research and development expense for 2014

The company allocated $20,000 in overhead to research and development. What is Wagners' research and development expense for 2014?

  Explain a certain liquid has a vapor pressure

A certain liquid has a vapor pressure of 92.0 Torr at 23.0 °C and 251.0 Torr at 45.0 °C. Calculate the value of H°vap for this liquid. What is the original boiling point

  What is chambers expense associated with organization cost

Chamber intends to capitalize and amortize intangibles over the maximum allowable period in accordance with generally accepted accounting principles. Based on this strategy, what is Chambers's expense associated with organization costs in 2017?

  Good definitions of the cycles

Class, There is a lot to cover this week before the final so even though some students have not gotten involved yet, I want to keep going. You have provided some good definitions of the cycles

  Determine if goodwill is impaired

A goodwill impairment test is done as part of the year end closing process. Grier estimates the fair value of Walters to be $1.4 million. The fair value of Walters identifiable net assets, excluding goodwill, is $1.3 million.

  State a certain substance has a heat of vaporization

A certain substance has a heat of vaporization of 34.75 kJ/mol. At what Kelvin temperature will the vapor pressure be 4.00 times higher than it was at 289 K

  Compute the goodwill associated with the purchase of grafton

What if the purchase price was $69,000 would any goodwill be reported?


Write a Review


Similar Q& A

  Gross profit rate of clark company

In the Clark Company, sales were $480,000, sales returns and allowances were $30,000, and cost of goods sold was $288,000. The gross profit rate was

  What is the project payback period

The director of capital budgeting for Big Sky Health Systems, Inc., has estimated the following cash flows in thousands of dollars for a proposed new service.

  Experiencing phenomenal profits

Is is important for a company to follow a strict budget even though they may be experiencing phenomenal profits. Do you think there will a bias towards greed when creating the budget for this company? Explain.

  A classmate is considering dropping his or her accounting

a classmate is considering dropping his or her accounting class because he or she cannot understand the rules of debits

  What level of revenue is needed to yield an after-tax

golf glider makes gasoline-powered golf carts. the selling price is 5000 each and costs are as followsgolf gliders

  Accounts paayable confirmations

Discuss situations in wihc the auditor should use accounts paayable confirmations and discuss wheter the auditor is required to use them.

  Distribution of ages of homes

Using the data for home selling prices attached, test a realtor's claim that the average age of all homes in the area from which the random sample is drawn from is less than 30 years. Assume the distribution of ages of homes follow an approximatel..

  Basics of amount of contract costs incurred

What is the amount of contract costs incurred during the year ended December 31, 2012?

  Is it a current liability or a long term liability

Where on the balance sheet should a 20 year, 12% bond, due 1/1/2013 for $500,000 be listed. Is it a current liability or a long term liability?

  What is the weighted average

A company reports the following beginning inventory and purchases for the month of January. On January 26, the company sells 360 units. What is the cost of the 155 units that remain in ending inventory at January 31

  Schedule that shows the amount of profit

Antonio"s Restaurant specializes in Italian food. During June, Antonio's Restaurant recorded the following sales to customers and costs of oing business:

  Determining role the objective setting process

Describe the role the objective setting process plays in how and if auditing objectives are met. What are some steps you might take to ensure you consistently meet audit objectives?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd