Cedric Company recently traded in an older model computer for a new model. The o

Question

Cedric Company recently traded in an older model computer for a new model. The old model's book value was $180,000 (original cost of $400,000 less $220,000 in accumulated depreciation) and its fair value of the old equipment is $170,000. Cedric paid $60,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. (If no entry is required for a transaction/event, select "No journ entry required" in the first account field.) View transaction list Journal entry worksheet Record the exchange of assets Note: Enter debits before credits. Event General Journal Debit Credit

Explanation / Answer

Explanation

Equipment - New ($170000 + $6000) = $230000

Loss ($170000- $180000)= $10000

2

Calculation of Research and Development Cost

Salaries and Wages for Lab Researches + Material used in R&D research +Fees paid to third parties for R&D projects + Depreciation on R&D Equipment

( As values are missing so Correct answer cant be provided)

Particulars Debit Credit Equipment - New $230,000 Accumulated Depreciation $220,000 Loss $10,000 Cash $60,000 Equipment - Old $400,000   

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