Riverbed Company traded a used welding machine (cost $9,720, accumulated depreci
ID: 2550680 • Letter: R
Question
Riverbed Company traded a used welding machine (cost $9,720, accumulated depreciation $3,240) for office equipment with an estimated fair value of $5,400. Riverbed also paid $3,240 cash 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 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Account Titles and Explanation
Debit
Credit
Account Titles and Explanation
Debit
Credit
Riverbed Company traded a used welding machine (cost $9,720, accumulated depreciation $3,240) for office equipment with an estimated fair value of $5,400. Riverbed also paid $3,240 cash 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 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Explanation / Answer
Journal entry for exchange of asset
Date
Particulars
Debit
Credit
Office equipment
$5,400
Accumulated depreciation on welding machine
$3,240
Loss on exchange (Bal fig)
$4,320
To Welding machine
$9,720
To Cash
$3,240
(Being exchange of asset recorded)
Journal entry for exchange of asset
Date
Particulars
Debit
Credit
Office equipment
$5,400
Accumulated depreciation on welding machine
$3,240
Loss on exchange (Bal fig)
$4,320
To Welding machine
$9,720
To Cash
$3,240
(Being exchange of asset recorded)
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