On November 1, 2020, the Jones Corporation acquired new equipment to be used in its production process.
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Question:
On November 1, 2020, the Jones Corporation acquired new equipment to be used in its production process. Jones exchanged an existing asset that had an original cost of $100,000 and accumulated depreciation of $45,000. The fair value of the old equipment is $65,000. In addition, Jones paid $30,000 cash to the equipment manufacturer to acquire the new equipment.
Prepare the journal entry to record the exchange transaction assuming that the transaction does not have commercial substance. Clearly label and show all of your work
Related Book For
Systems Analysis and Design
ISBN: 978-1133274636
9th Edition
Authors: Shelly Cashman, Gary B. Shelly and Harry J. Rosenblatt
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