Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $20,200 12,800 14,300 8,100 6,700 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is enterad

Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $20,200 12,800 14,300 8,100 6,700 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is enterad

Name: Bramble Company purchased an electric wax melter on April 30, 2025, b
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Description: Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash.The following data relate to the purchase.List price of new melterCash paidCost of old melter (5-year life, $800 salva

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for 1,500 each. The company uses group depreciation on a straight-line basis. Required: 1. Prepare journal entries to record the acquisition and the first years depreciation expense. 2. If one of the cars is sold at the beginning of the second year for 7,000, what journal entry is required?
Sheridan Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $18,000 11,400 12,800 7,200 5,900 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sheridan's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Riverbed Company purchased an electric press on June 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new press Cash paid Cost of old press (10-year life, $900 residual value) Accumulated depreciation-old press (straight-line) Second-hand market value of old press $24,400 11,600 35,300 26,700 7,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Riverbed's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts: List all debit entries before credit entries)
Crane Ltd. purchased an electric wax melter on April 30, 2023, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter Cash paid Cost of old melter (5-year life, $690 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market Account Titles and Explanation (To record depreciation expense to date of exchange) $16,000 Assuming that Crane's fiscal year ends on December 31 and depreciation has been recorded through December 31, 2022, prepare the journal entries that are necessary to record this exchange. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) (To record equipment exchange) 6,500 12,690 7,200 6,080 Debit TUOT Credit www.
Novak Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $22,120 Cash paid 14,000 Cost of old melter (5-year life, $980 salvage value) 15,680 Accumulated Depreciation-old melter (straight-line) 8,820 Secondhand fair value of old melter 7,280 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Novak’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Cannondale Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $700 salvage value) Accumulated depreciation—old melter (straight-line) Secondhand fair value of old melter $15,800 10,000 11,200 6,300 5,200 Instructions Prepare the journal entry(ies) necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Cannondale’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Cannondale Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $15,800 Cash paid 10,000 Cost of old melter (5-year life, $700 salvage value) 11,200 Accumulated Depreciation-old melter (straight-line) 6,300 Secondhand fair value of old melter 5,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Cannondale’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No. Account Titles and Explanation Debit Credit (a) Exchange has commercial substance:…
Current Attempt in Progress Your answer is partially correct. Pharoah Company owns equipment that cost $72,800 when purchased on January 1, 2022. It has been depreciated using the straight- line method based on an estimated salvage value of $5,600 and an estimated useful life of 5 years. Prepare Pharoah Company's journal entries to record the sale of the equipment in these four independent situations. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) Sold for $34,720 on January 1, 2025. (b) Sold for $34,720 on May 1, 2025. (c) Sold for $12,320 on January 1, 2025. (d) Sold for $12,320 on October 1, 2025. No. Account Titles and Explanation (a) Cash Debit 34720 Credit
Flint Company purchased an electric press on June 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new press Cash paid Cost of old press (10-year life, $1,000 residual value) Accumulated depreciation-old press (straight-line) Secondhand market value of old press $24,700 13,100 33,700 26,700 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Flint's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Ward Company purchased an electric press on June 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new press $24,800 Cash paid 12,000 Cost of old press (10-year life, $1,000 residual value): 35,000 Accumulated depreciation—old press (straight-line): 27,200 Second-hand market value of old press 6,600 Prepare the journal entry(ies) necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Ward’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Duck Pond Golf Club purchased equipment on January 1, 2018, for $48,282. Suppose Duck Pond Golf Club sold the equipment for $36,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $22,284. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss) Course Chat Time 1 GB V 19
Crane Company purchased machinery for $662400 on January 2, 2023. Straight-line depreciation has been recorded based on a $34200 salvage value and a 3-year useful life. The machinery was sold on March 2, 2025 at a gain of $10900. The journal entry to record the sale of the machinery will include a) a debit to Accumulated Depreciation - Equipment for $418800.b) a credit to Equipment for $208700.c) a credit to Gain on Disposal for $23300.d) a debit to Cash for $219600.