Brief Exercise 10-8 Kingbird Corporation traded a used truck (cost $26,400, accu

ID: 2411205 • Letter: B

Question

Brief Exercise 10-8 Kingbird Corporation traded a used truck (cost $26,400, accumulated depreciation $23,760) for a small computer with a fair value of $4,356. Kingbird also paid $660 in the transaction Prepare the journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Answer

Book Value = 26400 – 23760 = $ 2,640

Account Titles & Explanation

Debit

Credit

Working

Accumulated Depreciation

$ 23,760.00

[credit balance now debited]

Computer (Equipment - NEW)

$ 4,356.00

[fair Value of new asset acquired]

Gain On Exchange

$ 1,056.00

[calculated above]

Cash

$ 660.00

[cash paid]

Truck (Equipment -OLD)

$ 26,400.00

[cost of truck given up]