question archive Asset Disposal Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade
Asset Disposal Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade
Subject:AccountingPrice: Bought3
Asset Disposal Nate's Hot Dogs exchanges long-term assets with Lizzy's Lemonade. Nate receives a delivery truck and gives up a piece of machinery. The book value of the machinery were and S25,000 (original cost of S35,000 less accumulated depreciation of $10,000), respectively. The delivery truck was worth $32,000. Q6. Assuming in addition to the asset exchange, Nate paid an additional $8,000 in cash to Lizzy. Does Nate have a gain or loss from the exchange? How much? Prepare journal entry to record this exchange. Q7. Assuming in addition to the asset exchange, Nate paid an additional S5,000 in cash to Lizzy. Does Nate have a gain or loss from the exchange? How much? Prepare journal entry to record this exchange. 3. Notes Payable On November 1, 2018, Dual Systems borrows $200,000 to expand operations. Dual Systems signs a six-month, 9% promissory note. Interest is payable at maturity. Dual System's year-end is December 31 Q8. Record the issuance of the note by Dual Systems; the appropriate adjusting entry for the note by Dual Systems on December 31, 2018; and the payment of the note by Dual Systems at maturity on April 30, 2019.
