Riverbed Company purchased an electric press on June 30, 2025, by trading in its old gas model and paying the balance in cash. following data relate to the purchase: List price of new press Cash paid Cost of old press (10-year life, $900 residual value) Accumulated depreciation-old press (straight-line) Second-hand market value of old press $24,400 11,600 35,300 26,700 7,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lac commercial substance. Riverbed's fiscal year ends on December 31, and depreciation has been recorded through December 31, 202 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" fom the account titles and enter O for the amounts List all debit entries before credit entries)

Riverbed Company purchased an electric press on June 30, 2025, by trading in its old gas model and paying the balance in cash. following data relate to the purchase: List price of new press Cash paid Cost of old press (10-year life, $900 residual value) Accumulated depreciation-old press (straight-line) Second-hand market value of old press $24,400 11,600 35,300 26,700 7,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lac commercial substance. Riverbed's fiscal year ends on December 31, and depreciation has been recorded through December 31, 202 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" fom the account titles and enter O for the amounts List all debit entries before credit entries)

Name: Riverbed Company purchased an electric press on June 30, 2025, by tra
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Description: Riverbed Company purchased an electric press on June 30, 2025, by trading in its old gas model and paying the balance in cash. Thefollowing data relate to the purchase:List price of new pressCash paidCost of old press (10-year life, $900 residual va

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.
Ward Company purchased an electric press on June 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new press $24,800 Cash paid 12,000 Cost of old press (10-year life, $1,000 residual value): 35,000 Accumulated depreciation—old press (straight-line): 27,200 Second-hand market value of old press 6,600 Prepare the journal entry(ies) necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Ward’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Bramble Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $20,200 No. Account Titles and Explanation (a) Exchange has commercial substance: 12,800 14,300 8,100 6,700 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Bramble's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (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. List all debit entries before credit entries.) Debit Credit
Crane Ltd. purchased an electric wax melter on April 30, 2023, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: List price of new melter Cash paid Cost of old melter (5-year life, $690 residual value) Accumulated depreciation on old melter (straight-line) Market value of old melter in active secondary market Account Titles and Explanation (To record depreciation expense to date of exchange) $16,000 Assuming that Crane's fiscal year ends on December 31 and depreciation has been recorded through December 31, 2022, prepare the journal entries that are necessary to record this exchange. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) (To record equipment exchange) 6,500 12,690 7,200 6,080 Debit TUOT Credit www.
Cannondale Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $700 salvage value) Accumulated depreciation—old melter (straight-line) Secondhand fair value of old melter $15,800 10,000 11,200 6,300 5,200 Instructions Prepare the journal entry(ies) necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Cannondale’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Sheridan Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $800 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter $18,000 11,400 12,800 7,200 5,900 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sheridan's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (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. List all debit entries before credit entries.)
Novak Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $22,120 Cash paid 14,000 Cost of old melter (5-year life, $980 salvage value) 15,680 Accumulated Depreciation-old melter (straight-line) 8,820 Secondhand fair value of old melter 7,280 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Novak’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019.
Windsor Company purchased an electric wax melter on April 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter Cash paid Cost of old melter (5-year life, $700 salvage value) Accumulated depreciation-old melter (straight-line) Secondhand fair value of old melter No. Account Titles and Explanation (a) Exchange has commercial substance: (To record current depreciation.) Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Windsor's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2024. (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. List all debit entries before credit entries.) (To record exchange of the equipment.)…
Cannondale Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new melter $15,800 Cash paid 10,000 Cost of old melter (5-year life, $700 salvage value) 11,200 Accumulated Depreciation-old melter (straight-line) 6,300 Secondhand fair value of old melter 5,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Cannondale’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2019. (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.) No. Account Titles and Explanation Debit Credit (a) Exchange has commercial substance:…
Flint Company purchased an electric press on June 30, 2017, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase. List price of new press Cash paid Cost of old press (10-year life, $1,000 residual value) Accumulated depreciation-old press (straight-line) Secondhand market value of old press $24,700 13,100 33,700 26,700 6,200 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Flint's fiscal year ends on December 31, and depreciation has been recorded through December 31, 2016. (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.)
Swifty Company purchased an electric press on June 30, 2025, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase: \table[[List price of new press, $25, 100