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anyanavicka [17]
3 years ago
5

Flint Corporation traded a used truck (cost $21,600, accumulated depreciation $19,440) for a small computer with a fair value of

$3,564. Flint also paid $540 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance
Business
1 answer:
lara [203]3 years ago
5 0

Answer:

Dr Computer 2,700

Dr Accumulated depreciation - truck 19,440

    Cr Truck - 21,600

    Cr Cash 540

Explanation:

Since the transaction lacked commercial substance, Flint must record the computer at the asset value of the truck plus the additional cash given (boot payment).

computer's basis = $21,600 - $19,440 + $540 = $2,700

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During the month of May, a company performed $2,400 of cash services and $3,300 of services on account. The journal entry at the
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Answer:

Debit : Cash  $2,400

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Revenue is recognized when a firm transfers the control of goods or services not when paid.

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The journal entry at the end of the month to record this transaction would be :

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Nidal Company reported inventory in the 2020 year-end balance sheet, using the FIFO method, as $185,000. In 2021, the company de
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Answer:

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