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Arlecino [84]
2 years ago
6

On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated resid

ual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method. On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000. The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2019.
Business
1 answer:
m_a_m_a [10]2 years ago
7 0

Answer:

Explanation:

Cost =   68500

Date = January 1, 2017

December 31, 2019

Cost  =                                   68500

Acc. Depreiciation         =   -34,250       (68500/6)*3  

book Value                      =    34,250

Exchanged asset cost    =     35000

Trade in gain                   =      750

Accounting Entries

Asset                                     35000

Accumulated depriciation  34250  

                     Asset                                    68500

                     Gain on Exchange                  750

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not all of them

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8 0
2 years ago
Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (
tatuchka [14]

Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

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8 0
2 years ago
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represe
Alona [7]

Answer: The correct answer is e) $32.

Explanation:

Petty cash fund. $300

Office supplies. (80)

Merchandise inventory. (160)

Miscellaneous expenses. (20)

Cash shortage. (8)

Balance in petty cash. $32

In terms of accounting entries,

Debit Office supplies. $80

Debit Merchandise inventory. $160

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