The transactions listed below occurred at Jarred Company during 20X1: DATE Mar. 25 July 19 TRANSACTIONS...

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The transactions listed below occurred at Jarred Company during 20X1: DATE Mar. 25 July 19 TRANSACTIONS Exchanged a printer (Office Equipment) that had an original cost of $5,320 when purchased on January 4th, two years ago. The useful life of the old asset was originally estimated at four years and the salvage value at $280. The new printer had a price and market value of $10,880. Jarred Co. exchanged the old machine and paid $5,440 cash. The new printer is estimated to have a useful life of five years and a salvage value of $680. Exchanged a truck (Vehicles) for a new one that had a sales price, and fair value, of $44,480. Received a trade-in allowance of $11,300 on the old truck and paid cash of $33,100. The old truck had been purchased for $37,080 on May 27th, three years earlier. The life of the old truck was originally estimated at four years and the salvage value at $6,600. The life of the new truck is estimated to be five years and it is estimated to have a salvage value of $9,600. Aug. 18 Sold a truck that was purchased on January 5th, two years ago, for an original purchase price of $44,760. It had an Required: estimated life of four years and an estimated salvage value of $7,800. Sales price is as indicated in Instructions, below. Note: In following these instructions, assume that straight-line depreciation is used and that depreciation was last recorded on December 31, 20X0. (Note: The presentation in the text related to the exchanges of assets has been superseded by FAS 153. Under FAS 153, gains and losses on the exchange of assets that have commercial substance are recognized in full. The deferral of gains (by reducing the basis in the new asset) only pertains to assets that lack commercial substance.) 1. Prepare the journal entries to record the two exchange transactions. 2. Record the journal entries for the truck sold on August 18, 20X1. a. The sales price was $21,400. b. The sales price was $16,800. Analyze: What was the book value of the truck sold on August 18? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Prepare the journal entries to record the two exchange transactions. View transaction let View journal entry worksheet No Date General Journal 1 Mar 25, 20X1 Depreciation expense-Office equipment Accumulated depreciation-Office equipment 2 Mar 25, 20X1 Office equipment (New) 3 Accumulated depreciation-Office equipment Gain on trade-in of equipment Office equipment (Old) Cash July 19, 20X1 Depreciation expense-Vehicles Accumulated depreciation-Vehicles 4 July 19, 20X1 Vehicles (New) Accumulated depreciation-Vehicles Loss on trade-in of equipment Vehicles (Old) Cash Debit Credit 10,880 5,320 5,440 The transactions listed below occurred at Jarred Company during 20X1: DATE Mar. 25 July 19 TRANSACTIONS Exchanged a printer (Office Equipment) that had an original cost of $5,320 when purchased on January 4th, two years ago. The useful life of the old asset was originally estimated at four years and the salvage value at $280. The new printer had a price and market value of $10,880. Jarred Co. exchanged the old machine and paid $5,440 cash. The new printer is estimated to have a useful life of five years and a salvage value of $680. Exchanged a truck (Vehicles) for a new one that had a sales price, and fair value, of $44,480. Received a trade-in allowance of $11,300 on the old truck and paid cash of $33,100. The old truck had been purchased for $37,080 on May 27th, three years earlier. The life of the old truck was originally estimated at four years and the salvage value at $6,600. The life of the new truck is estimated to be five years and it is estimated to have a salvage value of $9,600. Aug. 18 Sold a truck that was purchased on January 5th, two years ago, for an original purchase price of $44,760. It had an Required: estimated life of four years and an estimated salvage value of $7,800. Sales price is as indicated in Instructions, below. Note: In following these instructions, assume that straight-line depreciation is used and that depreciation was last recorded on December 31, 20X0. (Note: The presentation in the text related to the exchanges of assets has been superseded by FAS 153. Under FAS 153, gains and losses on the exchange of assets that have commercial substance are recognized in full. The deferral of gains (by reducing the basis in the new asset) only pertains to assets that lack commercial substance.) 1. Prepare the journal entries to record the two exchange transactions. 2. Record the journal entries for the truck sold on August 18, 20X1. a. The sales price was $21,400. b. The sales price was $16,800. Analyze: What was the book value of the truck sold on August 18? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze Prepare the journal entries to record the two exchange transactions. View transaction let View journal entry worksheet No Date General Journal 1 Mar 25, 20X1 Depreciation expense-Office equipment Accumulated depreciation-Office equipment 2 Mar 25, 20X1 Office equipment (New) 3 Accumulated depreciation-Office equipment Gain on trade-in of equipment Office equipment (Old) Cash July 19, 20X1 Depreciation expense-Vehicles Accumulated depreciation-Vehicles 4 July 19, 20X1 Vehicles (New) Accumulated depreciation-Vehicles Loss on trade-in of equipment Vehicles (Old) Cash Debit Credit 10,880 5,320 5,440