c. Exchange of Plant Assets - At a Gain, But Gain Not Recognized: On 9/10 Year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
c. Exchange of Plant Assets - At a "Gain," But Gain Not Recognized: On 9/10 Year 6 ECU Corporation disposes of old MACHINERY & EQUIPMENT that cost $120,000/ with ACCUMULATED DEPRECIATION of $72,000 and / pays $80,000 CASH / in exchange for new MACHINERY & EQUIPMENT that cost $160,000. However, the new MACHINERY & EQUIPMENT must be debited for whatever amount will balance the entry after all the other accounts have been recorded, since a GAIN is not recognized on an "exchange." Phrase Account Category Affect Dr. or Cr. 1st: AL SE RE contra Dr Cr 2nd: AL SE RE contra Dr Cr 3rd: AL SE RE contra Dr Cr 4th: AL SE RE contra Dr Cr Date Accounts Debit + + + + Credit c. Exchange of Plant Assets - At a "Gain," But Gain Not Recognized: On 9/10 Year 6 ECU Corporation disposes of old MACHINERY & EQUIPMENT that cost $120,000/ with ACCUMULATED DEPRECIATION of $72,000 and / pays $80,000 CASH / in exchange for new MACHINERY & EQUIPMENT that cost $160,000. However, the new MACHINERY & EQUIPMENT must be debited for whatever amount will balance the entry after all the other accounts have been recorded, since a GAIN is not recognized on an "exchange." Phrase Account Category Affect Dr. or Cr. 1st: AL SE RE contra Dr Cr 2nd: AL SE RE contra Dr Cr 3rd: AL SE RE contra Dr Cr 4th: AL SE RE contra Dr Cr Date Accounts Debit + + + + Credit
Expert Answer:
Answer rating: 100% (QA)
Phrase Accounts Category Affect Dr or Cr 1st Machinery Equipment Old A Cr 2... View the full answer
Related Book For
College Accounting A Practical Approach
ISBN: 9780134729312
14th edition
Authors: Jeffrey Slater, Mike Deschamps
Posted Date:
Students also viewed these accounting questions
-
A loss on an exchange of plant assets that has commercial substance must be recognized in the accounting records. True or false?
-
The plant Assets account and Accumulated Depreciation -- Plant Assets account of Star Media shown the following: Star Media sold plant assets at an $11,000 loss. Where on the statement of cash flows...
-
Account No Account Titles Dr Cr Dr Cr 101Cash8840 112Accounts Receivable10989 130Prepaid Insurance2828 157Equipment23599 167Accumulated DepreciationEquip4394 201Accounts Payable9150 212Salaries and...
-
Select the meso compound in the 1 point choices below: * >OH >H rggrr554 CH,OH CH,OH ffffhfghgt
-
What are the biggest cultural obstacles that we must overcome if we are to work effectively in Mexico? Are there different obstacles in France? Japan?
-
A box is separated by a partition which divides its volume in the ration of 3:1. the larger portion of the box contains 1000 molecules of Ne gas; the smalled portion contains 100 molecules of He gas....
-
The forward market is efficient if the lagged forward rate is an unbiased predictor of the current spot rate. (a) Estimate the following model of the spot and the lagged 1-month forward rate \[...
-
1. What are the four requirements of a valid contract? 2. Did Duncan have a valid contract with Mitsui for employment as CDO? If so, was it a bilateral or a unilateral contract? 3. What are the...
-
Draw a Use case diagram ERD diagram Swimlane diagram you are building a mobile application for XYZ University, using the following project scopes, using a case diagram, a ERD DIAGRAM, and a Swimlane...
-
Karakomi Cameras Inc. has a Disposables Division that produces a camera that sells for $15.00 per unit in the open market. The cost of the product is $13.10 (variable manufacturing of $5.00, plus...
-
Under Eagle Co.'s job costing system, manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During February, Eagle's transactions included the following:...
-
Financial journalist Joe Nocera observed about the decision of the Federal Reserve and the Treasury not to help save Lehman Brothers: Ever since that weekend, most people, including me, have viewed...
-
One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in September 2014 a company sells a March 2016 orange juice futures contract for 120 cents per pound. In...
-
Is Michael McAvoys explanation of how the Federal Reserve Bank cities were selected more consistent with a public interest view of how the decision was made or a principal-agent view? Briefly explain.
-
Why did Congress want the member banks to own the Federal Reserve Banks? Does the current relationship between the member banks and the Federal Reserve Banks indicate that Congress achieved its goal?
-
Why do pension funds have vesting periods? Do vesting periods have any advantages to employees relative to a system where new hires are eligible to participate in a pension plan right away?
-
Stock purchases with a 45% initial margin and a 35% maintenance margin will be called when the price drops by what percentage? ABC Company had net earnings of $1.5 billion last year. It has 350...
-
One hundred pounds of water at atmospheric pressure are heated from 60F to 200F. What is the enthalpy change? The internal energy change? Why is the difference between the internal energy change and...
-
Lamy Company records invoices at gross in its voucher system. From the following transactions, (a) Record in general journal form the appropriate entries at gross and? (b) Record the entries as if...
-
From the following, calculate the net cash flows from operating activities (use the direct method): Sales $9,300 Cost of Goods Sold 4,400 Salaries Expense 1,400 Insurance Expense 840 Other Expenses...
-
From the trial balance in Figure 11.16 and additional data, complete the worksheet for Sean?s Wholesale Clothing Company. Additional Data1. a./b. Ending merchandise inventory on December 31,...
-
In an audit of a corporation that has a bond issue outstanding, the trust indenture is reviewed and confirmation as to the issue is obtained from the trustee. List eight matters of importance to the...
-
Robertson Company had accounts receivable of \(\$ 200,000\) at December 31, 200X, and had provided an allowance for uncollectible accounts of \(\$ 6,000\). After performing all normal auditing...
-
Tom Jones, CPA, is auditing the financial statements of a manufacturing company with a significant amount of trade accounts receivable. Jones is satisfied that the accounts are properly summarized...
Study smarter with the SolutionInn App