× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Navyseal Navyseal
wrote...
Posts: 337
Rep: 14 0
5 years ago
Briyanne, Inc. purchased a computer for $5,000. During 2016 and 2017, the company recorded total depreciation of $4,000 on the computer. On January 1, 2018, the company exchanges the computer for a new one, paying $4,000 cash. The market value of the new computer is $6,000. Prepare the journal entry to record this transaction.  Assume the exchange has commercial substance.
Textbook 
Horngren's Accounting

Horngren's Accounting


Edition: 11th
Authors:
Read 35 times
2 Replies

Related Topics

Replies
wrote...
#1
5 years ago
 
Computer Equipment (new)6,000
Accumulated DepreciationComputer Equipment4,000
Gain on Disposal1,000
Computer Equipment (old)5,000
Cash4,000

Explanation:
Calculation of gain or loss on exchange:

Market value of assets received$6,000
Less:
Book value of asset exchanged$1,000
Cash paid4,000(5,000)
Gain or (Loss)$1,000
Navyseal Author
wrote...
#2
5 years ago
Helps a lot... Now I'm ready for my quiz
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1158 People Browsing
 127 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 178
  
 302
  
 84
Your Opinion
Previous poll results: Which country would you like to visit for its food?