Bia Inc. traded its existing rental cars for new cars with better technology. Two-thirds of the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Bia Inc. traded its existing rental cars for new cars with better technology. Two-thirds of the existing cars' original cost of $375,000 had been depreciated. The new cars are valued at $500,000 and Bia made a cash payment of $400,000. Required: Prepare the appropriate journal entry (entries) for the asset exchange. Mey Ltd. has a fiscal year ending on December 31. The company owns a building that it purchased on January 1, 2023, for 9,000,000 (excluding the land value). Management estimates the useful life to be 30 years, with no residual value. The company uses the straight-line depreciation method. The following additional information is available. Dec 31, 2023 - Fair value: $9,200,000 Dec 31, 2024 Fair value: $8,000,000 Required: The company uses the revaluation model (asset adjustment method) to account for its property, plant, and equipment. Prepare the year-end adjusting entries for 2023 and 2024 (Round to the nearest dollar). Bia Inc. traded its existing rental cars for new cars with better technology. Two-thirds of the existing cars' original cost of $375,000 had been depreciated. The new cars are valued at $500,000 and Bia made a cash payment of $400,000. Required: Prepare the appropriate journal entry (entries) for the asset exchange. Mey Ltd. has a fiscal year ending on December 31. The company owns a building that it purchased on January 1, 2023, for 9,000,000 (excluding the land value). Management estimates the useful life to be 30 years, with no residual value. The company uses the straight-line depreciation method. The following additional information is available. Dec 31, 2023 - Fair value: $9,200,000 Dec 31, 2024 Fair value: $8,000,000 Required: The company uses the revaluation model (asset adjustment method) to account for its property, plant, and equipment. Prepare the year-end adjusting entries for 2023 and 2024 (Round to the nearest dollar).
Expert Answer:
Answer rating: 100% (QA)
Journal Entry for Asset Exchange Debit New Cars 500000 Debit Accumulated Depreciation 250000 Credit ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Question 1 This question has two parts, (A) and (B). Answer both parts. 100% Liverpool plc is a company that manufactures a number of different types of electrical goods and has a year end of 31...
-
Tabulate the function f(x) = sin x for x = 0.0(0.2)1.6. From this table estimate, by linear interpolation, the value of sin 1.23. Construct a table equivalent to Figure 2.102, and so estimate the...
-
CVP analysis, changing revenues and costs Sunshine Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunshines fixed costs are $22,000 per month....
-
The answer should demonstrate your ability to analyze the facts in the question, to tell the difference between material facts and immaterial facts, and to discern the points of law and facts upon...
-
The change in partial molar properties with composition at constant temperature and pressure can be better explained with the (a) Gibbs-Helmholtz equation (c) Gibbs equation (b) Gibbs-Duhem equation...
-
Maria Rivera, owner of Rivera Pharmacy, uses the direct write-off method in accounting for uncollectible accounts. Record the following transactions in general journal form: July 20 Wrote off $2,325...
-
Dundee Company issued $ 1 , 0 0 0 , 0 0 0 face ( i . e . , par ) value 1 0 - year bonds at 1 0 2 on January 1 , 2 0 X 5 , which Mega Corporation purchased. The coupon rate on the bonds is 9 percent....
-
1. Look at the list of accounts (in no particular order) of Geewhiz Productions at 30 November 2015 and decide which ones are income statement accounts. 2. Calculate net profit based on your answer...
-
Consider a function f: (a,b) R of class C. Show that f is convex if and only if f"(x) > 0 for all a (a, b).
-
Please let me know how to solve below error ====== ArrayQueue.java successfully compiled. ====== [ArrayQueue.java] [Missing] Method public void enqueue(T) is missing/modified. [ArrayQueue.java]...
-
The task is to create game on Greenfoot using sustainable development goal Affordable and Clean Energy as the theme. This is the work accomplished so far Game where character does different actions...
-
A company faces a stream of obligations over the next 4 years as shown below, where the numbers denote thousands of dollars. Year 1 2 3 4 CF ('000) 200 0 500 300 The spot rate curve is given below:...
-
Two skaters of equal mass skate toward each other, each moving at 4 m/s. Their lines of motion are separated by a perpendicular distance of 2.5 m. Just as they pass each other (still 2.5 m apart),...
-
16) You are offered an investment that will pay the following cash flows at the end of each of the next five years at a cost of $800. What is the Net Present Value (NPV) if the required rate of...
-
Beginning Work-in-Process Inventory Direct Materials Used Direct Labor Manufacturing Overhead Total Manufacturing Costs Incurred during the Year Total Manufacturing Costs to Account For Ending...
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
For each concept in the following table, identify whether the concept relates to (i) representational faithfulness, (ii) recognition, or (iii) measurement. Representational faithfulness Recognition...
-
a. Complete the table below to indicate whether the intangibles listed are amortizable assets as they have a finite life; are not amortized as they have an indefinite life; or may be either depending...
-
Obtain the 2013 financial statements for Thomson Reuters Corporation either through the companys website or through SEDAR (www.sedar.com). Required: a. In addition to the general requirements for the...
-
Discuss the significance of discounting in business decision making.
-
What are the main components of corporate directional strategies?
-
Discuss the advantages of real options over other capital budgeting evaluation techniques.
Study smarter with the SolutionInn App