Prepare the journal entry to record the exchange

Assignment Help Financial Accounting
Reference no: EM131268405

The Pipeline Company recently traded in a pick-up truck or a newer model truck. The old truck’s book value was $1,000 (original cost of $13,000 less $12,000 in accumulated depreciation) and its fair value was $800. Pipeline paid $14,000 to complete the exchange. The exchange has commercial substance.

a) Prepare the journal entry to record the exchange.

b) Assume the same facts in (a) above except that the fair value of the old truck is $1,500. Prepare the journal entry to record the exchange.

Reference no: EM131268405

Questions Cloud

How has technology revolutionised warfare : Write an essay about this topic : "how has technology revolutionised warfare throughout the last century or so?".
How long will it take money invested in given fund to double : Assume that money invested in this fund continues to earn 9.58% compounded annually. How long will it take money invested in this fund to double?
Story of detroit heyday : Tell the story of Detroit's Heyday in the 1990's. Give us an insight into what happened (the decisions, the failures, the poor planning) to precipitate the financial failure of 2013. End the story on a hopeful note, tell us what has been done and ..
Determine an upper bound on the probability : Assume that soft-decision decoding is performed on both codes. Determine an upper (union) bound on the probability of a bit error based on the minimum distance of the concatenated code.
Prepare the journal entry to record the exchange : The Pipeline Company recently traded in a pick-up truck or a newer model truck. The old truck’s book value was $1,000 and its fair value was $800. Pipeline paid $14,000 to complete the exchange. The exchange has commercial substance. Assume the same ..
How many years will it take an investment : How many years (to two decimal places) will it take an investment of $35,000 to grow to $50,000 if it is invested at 4.75% compounded continuously?
Determine the fraction of the total interference : Determine the fraction of the total interference that appears at the output of the correlator when the number of PN chips per bit is Lc.
Determine how best to distribute the merit pool : Calculate the 3% merit budget (merit pool is determined by computing 3% of the total salary of your team) - Compute each employee's compa-ratio
What was the final cost of warehouse : On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2017. What was the final cost of Dreamworld's warehouse?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Auditing the purchasing process

There are several important disclosure items to consider when auditing the purchasing process. Discuss what they are and why they are important.

  Annual interest compounded monthly

Sally deposited $100 a month in her savings account for 24 months. For the next five years she made no deposits. What is the future worth in Sally’s savings account at the end of seven years, if the account earned 6% annual interest, compounded month..

  How much was income for july using absorption costing

Ramon Company reported the following units of productions and sales for June and July: How much was income for July using absorption costing?

  What amount of this debt should be eliminated

Jordan, Inc., holds 75 percent of the outstanding stock of Paxson Corporation. Paxson currently owes Jordan $597,500 for inventory acquired over the past few months. In preparing consolidated financial statements, what amount of this debt should be e..

  Straight-line method and the units-of-output method

On January 3, 2013, the Soloman Toy Company purchased a machine for $24,000. The machine is expected to produce 200,000 units during its useful life of five years and have a salvage value of $2,000 at the end of that period. The machine produced 41,0..

  The balance sheet and income statement for a company are

the balance sheet and income statement for a company are provided below along with selected additional financial

  Accumulated depreciation

A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is

  Evaluate the gross profit

Evaluate the gross profit? and What is the cost of goods sold and What's the selling price?

  What is minimum level of earnings before interest and taxes

This new debt will be used to repurchase shares of the outstanding stock. The restructuring is expected to increase the earnings per share. What is minimum level of earnings before interest and taxes that the firm is expecting? Ignore taxes?

  Cash vs accrual accounting

First of all, let me just say that anyone can copy from the text. I'm not going to ask you to parrot back the definitions of cash and accrual accounting. I would like for you to describe the two methods in your own words first. Then, answer the..

  Find out the amount of depreciation expense for years end

Find out the amount of depreciation expense for the years ended Dec 31, 2009, 2010, 2011 and 2012 by the straight-line method,

  What is the operating cash flow in transaction

A company sold PP&E for $200. Prior to the sale, the net book value of the PP&E on the financial statements was $240. Thus the company recorded a loss on sale of equipment of $40 in net income. What is the operating cash flow in this transaction?

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