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The property, plant, and equipment accounts for Buffalo Company held the following opening balances on January 1, 2023 (the first day of Buffalo's fiscal year): Land Equipment Accumulated Depreciation-Equipment Machinery Accumulated Depreciation-Machinery a. b. C. d. The following transactions took place during 2023 (assume all transactions took place on January 1): a. b. $542,000 C. 792,000 No. Account Titles and Explanation d. 144,000 459,000 162,000 Buffalo Company paid $18,100 related to the machinery and $7,000 related to the equipment for maintenance to keep the assets in normal working order. Prepare the journal entries to record the above transactions on the books of Buffalo Company. (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.) Equipment with an original cost of $39,600 and accumulated depreciation of $31,100 was traded in on some new equipment. The new equipment had a fair value of $52,100, and Buffalo was given a trade in allowance of $4,400 for the old equipment. Buffalo Company made an agreement with GRN Ltd. to exchange two similar plots of land. Buffalo's land had an original cost of $542,000 and a fair value of $760,000. GRN's land had an original cost of $569,400 and a fair value of $798,800. Buffalo also paid $38,800 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Buffalo paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment. Debit Credit TUTO

The property, plant, and equipment accounts for Buffalo Company held the following opening balances on January 1, 2023 (the first day of Buffalo's fiscal year): Land Equipment Accumulated Depreciation-Equipment Machinery Accumulated Depreciation-Machinery a. b. C. d. The following transactions took place during 2023 (assume all transactions took place on January 1): a. b. $542,000 C. 792,000 No. Account Titles and Explanation d. 144,000 459,000 162,000 Buffalo Company paid $18,100 related to the machinery and $7,000 related to the equipment for maintenance to keep the assets in normal working order. Prepare the journal entries to record the above transactions on the books of Buffalo Company. (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.) Equipment with an original cost of $39,600 and accumulated depreciation of $31,100 was traded in on some new equipment. The new equipment had a fair value of $52,100, and Buffalo was given a trade in allowance of $4,400 for the old equipment. Buffalo Company made an agreement with GRN Ltd. to exchange two similar plots of land. Buffalo's land had an original cost of $542,000 and a fair value of $760,000. GRN's land had an original cost of $569,400 and a fair value of $798,800. Buffalo also paid $38,800 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Buffalo paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment. Debit Credit TUTO

Intermediate Accounting: Reporting And Analysis
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 17P: On December 31, 2019, Vail Company owned the following assets: Vail computes depreciation and...
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The property, plant, and equipment accounts for Buffalo Company held the following opening balances on January 1, 2023 (the first day of Buffalo's fiscal year): Land Equipment Accumulated Depreciation-Equipment Machinery Accumulated Depreciation-Machinery a. b. C. d. The following transactions took place during 2023 (assume all transactions took place on January 1): a. b. $542,000 C. 792,000 No. Account Titles and Explanation d. 144,000 459,000 162,000 Buffalo Company paid $18,100 related to the machinery and $7,000 related to the equipment for maintenance to keep the assets in normal working order. Prepare the journal entries to record the above transactions on the books of Buffalo Company. (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.) Equipment with an original cost of $39,600 and accumulated depreciation of $31,100 was traded in on some new equipment. The new equipment had a fair value of $52,100, and Buffalo was given a trade in allowance of $4,400 for the old equipment. Buffalo Company made an agreement with GRN Ltd. to exchange two similar plots of land. Buffalo's land had an original cost of $542,000 and a fair value of $760,000. GRN's land had an original cost of $569,400 and a fair value of $798,800. Buffalo also paid $38,800 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Buffalo paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment. Debit Credit
Transcribed Image Text:The property, plant, and equipment accounts for Buffalo Company held the following opening balances on January 1, 2023 (the first day of Buffalo's fiscal year): Land Equipment Accumulated Depreciation-Equipment Machinery Accumulated Depreciation-Machinery a. b. C. d. The following transactions took place during 2023 (assume all transactions took place on January 1): a. b. $542,000 C. 792,000 No. Account Titles and Explanation d. 144,000 459,000 162,000 Buffalo Company paid $18,100 related to the machinery and $7,000 related to the equipment for maintenance to keep the assets in normal working order. Prepare the journal entries to record the above transactions on the books of Buffalo Company. (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.) Equipment with an original cost of $39,600 and accumulated depreciation of $31,100 was traded in on some new equipment. The new equipment had a fair value of $52,100, and Buffalo was given a trade in allowance of $4,400 for the old equipment. Buffalo Company made an agreement with GRN Ltd. to exchange two similar plots of land. Buffalo's land had an original cost of $542,000 and a fair value of $760,000. GRN's land had an original cost of $569,400 and a fair value of $798,800. Buffalo also paid $38,800 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Buffalo paid $66,500 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment. Debit Credit
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