Exercise 10-11 - Fair market value 400 Loss $1,600 *Cost...

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EXERCISE 10-11 (10–15 minutes) (a) Equipment . ..................................................................... 10,000 Accounts Payable . ............................................ 10,000 Accounts Payable. ....................................................... 10,000 Equipment ($10,000 X .02). ............................. 200 Cash. ...................................................................... 9,800 (b) Equipment (new) . ......................................................... 9,900* Loss on Disposal of Equipment. ............................. 1,600** Accumulated Depreciation . ...................................... 6,000 Accounts Payable . ............................................ 9,500 Equipment (old) . ................................................ 8,000 **Cost $8,000 Accumulated depreciation 6,000 Book value 2,000
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Unformatted text preview: Fair market value 400 Loss $1,600 *Cost ($9,500 + $400) $9,900 Accounts Payable. ....................................................... 9,500 Cash. ...................................................................... 9,500 (c) Equipment ($10,800 X .91743). ................................. 9,908 Discount on Note Payable . ....................................... 892 ($10,800 $9,908) Note Payable. ...................................................... 10,800 Interest Expense . ......................................................... 892 Note Payable. ................................................................. 10,800 Discount on Note Payable. ............................. 892 Cash. ...................................................................... 10,800...
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This note was uploaded on 06/06/2010 for the course ACCOUNTING ac505 taught by Professor Khan during the Spring '10 term at DeVry Fremont.

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Exercise 10-11 - Fair market value 400 Loss $1,600 *Cost...

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