On July 1, Twin Pines Co , a water distiller, acquired new bottling equipment with a list price (fair market value) of $435,000 Twin Pines received a trade in allowance (fair market value) of $91,200 on the old equipment of a similar type and paid cash of $343,800 The following information about the old equipment is obtained from the account in the equipment ledger cost, $303,000 accumulated depreciation on December 31, the end of the preceding fiscal year, $198,000 annual depreciation, $18,000 Assume the exchange has commercial substance Accumulated Depreciation Equipment Cash Depreciation Expense Equipment Equipment Repairs and Maintenance Expense Accounts Payable Gain on Exchange of Equipment Accounts Receivable Gain on Exchange of Equipment Loss on Exchange of Equipment Equipment (new) Equipment (old) Commercial Suusalice a Journalize the entry to record the current depreciation of the old equipment to the date of trade in b Journalize the entry to record the exchange transaction on July 1 If an amount box does not require an entry, leave it blank lllll

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Question: On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $435,000. Twin Pines received

On July 1, Twin Pines Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $435,000. Twin Pines received a trade-in allowance (fair market value) of $91,200 on the old equipment of a similar type and paid cash of $343,800. The following information about the old equipment is obtained from the account in the equipment ledger: cost, $303,000; accumulated depreciation on December 31, the end of the preceding fiscal year, $198,000; annual depreciation, $18,000. Assume the exchange has commercial substance.

Accumulated Depreciation-Equipment
Cash
Depreciation Expense-Equipment
Equipment
Repairs and Maintenance Expense
Accounts Payable
Gain on Exchange of Equipment
Accounts Receivable
Gain on Exchange of Equipment
Loss on Exchange of Equipment
Equipment (new)
Equipment (old)

image text in transcribed

Commercial Suusalice. a. Journalize the entry to record the current depreciation of the old equipment to the date of trade-in. b. Journalize the entry to record the exchange transaction on July 1. If an amount box does not require an entry, leave it blank. lllll