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

Reviews

Write a Review

Accounting Basics Questions & Answers

  Expenditures-expenses used in governmental accounting

What is the distinction between expenditures and expenses as the terms are used in governmental accounting?

  What is the effect of each of these items

Partner A performs $5,000 of contract-type Code Sec. 707(a) services for the ABC partnership in December of 2009, but does not get paid until January of 2010. A and ABC are both calendar-year taxpayers, but A is on the cash basis and ABC is on the..

  Respective financial statements

Describe two transactions, the accounts that are affected and the affect on the respective financial statements.

  Make a one to two 1-2 paragraph journal entry which

prepare a one to two 1-2 paragraph journal entry that examines your learning experiences with orion in week 10 of this

  Investments in equity securitie

Describe how investors report investments in equity securities when investor has controlling influence over an investee. (US GAAP)

  An expert panelist at the next society for human resource

Assume that you have been selected as an expert panelist at the next Society for Human Resource Management seminar to discuss the future of federal employees. Discuss at least two points that you would address in your speech regarding their fut..

  Withdrawal of cash made by the owner

A withdrawal of cash made by the owner will be found on the:

  Surviving spouse gross estate

Ernie's executor elects to claim the marital deduction for the QTIP transfer. At the time of the surviving spouse's death, the value of the QTIP trust is $3.6 million. The amount of the QTIP trust included in the surviving spouse's gross estate is..

  Calculating the allowance for doubtful accounts

Is it appropriate to use a hybrid of the percentage of sales and the percentage of receivables methods of calculating the allowance for doubtful accounts?

  Following are the amounts of the assets and liabilities of

following are the amounts of the assets and liabilities of st. kitts travel agency at december 31 2010 the end of the

  Information about the operations for rim and tip

Does not include TIP results.  Includes cost of goods sold1.     Compute operating income for RIM and TIP, separately, and the total operating income for both.2.     If the results in part 1 for TIP are typical, why do you believe RIM decided to sell..

  Company purchasing supplies

O'Connor Company purchased supplies totaling $21,600. By year end, $9,300 of supplies were still on hand. How much supplies expense should O'Connor recognize?

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