Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done

Komala Company traded its cutting equipment for the newer air-cooled equipment manufactured by Ivano Street Corporation. The air-cooled equipment will increase Komala's productivity. (Click the icon to view additional information.) Requirement Prepare the journal entry to record the exchange on the books of Komala Company. (Record debits first, then credits. Exclude explanations from any journal entries.) More info Account Equipment (New) Current Year 812300 Accumulated Depreciation-Equipment (Old) 567000 Loss on Exchange of Equipment 74000 Equipment (Old) Cash 709000 596300 The old equipment had a book value of $142,000 (cost of $709,000 less accumulated depreciation of $567,000). Assume that the accumulated depreciation is brought up to the date of the exchange. The old equipment was recently appraised at fair value of $216,000. Komala paid Ivano Street $596,300 in cash. The new air-cooled equipment had a fair value of $812,300. Print Done

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 8RE: At the end of 2019, Framber Company received 8,000 as a prepayment for renting a building to a...

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