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

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The transactions listed below occurred at Jarred Company during 20X1: DATE TRANSACTIONS Mar. 25 Exchanged a printer (Office Equipment) that had an original cost of $5,760 when purchased on January 4th, two. years ago. The useful life of the old asset was originally estimated at six years and the salvage value at $120. The new printer had a price and market value of $8,320. Jarred Co. exchanged the old machine and paid. $4,160 cash. The new printer is estimated to have a useful life of five years and a salvage value of $520. July 19 Exchanged a truck (Vehicles) for a new one that had a sales price, and fair value, of $41,200. Received a trade-in allowance of $9,700 on the old truck and paid cash of $31,500. The old truck had been purchased for $31,880 on May 27th, three years earlier. The life of the old truck was originally estimated at four years and the salvage value at $5,000. The life of the new truck is estimated to be five years and it is estimated to have a salvage value of $8,000. Aug. 18 Sold a truck that was purchased on January 5th, two years ago, for an original purchase price of $36,440. It had an estimated life of four years and an estimated salvage value of $6,200. Sales price is as indicated in Instructions, below. Required: Note: In following these instructions, assume that straight-line depreciation is used and that depreciation was last recorded on December 31, 20XO. (Note: The presentation in the text related to the exchanges of assets has been superseded by FAS 153.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 $18,500. b. The sales price was $15,000. Analyze: What was the book value of the truck sold on August 18? The transactions listed below occurred at Jarred Company during 20X1: DATE TRANSACTIONS Mar. 25 Exchanged a printer (Office Equipment) that had an original cost of $5,760 when purchased on January 4th, two. years ago. The useful life of the old asset was originally estimated at six years and the salvage value at $120. The new printer had a price and market value of $8,320. Jarred Co. exchanged the old machine and paid. $4,160 cash. The new printer is estimated to have a useful life of five years and a salvage value of $520. July 19 Exchanged a truck (Vehicles) for a new one that had a sales price, and fair value, of $41,200. Received a trade-in allowance of $9,700 on the old truck and paid cash of $31,500. The old truck had been purchased for $31,880 on May 27th, three years earlier. The life of the old truck was originally estimated at four years and the salvage value at $5,000. The life of the new truck is estimated to be five years and it is estimated to have a salvage value of $8,000. Aug. 18 Sold a truck that was purchased on January 5th, two years ago, for an original purchase price of $36,440. It had an estimated life of four years and an estimated salvage value of $6,200. Sales price is as indicated in Instructions, below. Required: Note: In following these instructions, assume that straight-line depreciation is used and that depreciation was last recorded on December 31, 20XO. (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 $18,500. b. The sales price was $15,000. Analyze: What was the book value of the truck sold on August 18?