I-11.

03

Cousin's Bar-B-Q Restaurant recently remodeled its store. The remodel included obtaining
all new kitchen equipment. Much of the older equipment was traded-in as partial
consideration toward the purchase of the newer items. Examine each of the following
exchanges, and prepare appropriate entries to reflect the trade. Each exchange was
deemed to have commercial substance, except for the trade relating to the smoker oven.

Accumulated Cash Given or Fair Value of

Cost
Depreciation (Received) New Item
Sink $ 10,000 $ 6,500 $ - $ 5,000

Cutting table 20,000 8,000 - 10,000

Refrigerator 12,000 10,000 15,000 20,000

Freezer 18,000 4,000 11,000 17,000

Computer 7,500 6,000 (1,000) 5,000

Fire suppressor 9,000 2,000 (2,000) 3,000

Smoker oven 12,500 2,500 - 13,000

Name:
I-11.03
Date: Section:

GENERAL JOURNAL                                                                 

Date Accounts Debit Credit
Accumulated Depreciation 6,500
Sink (new) 5,000
Gain 1,500
Sink (old) 10,000
To record sink exchange

Accumulated Depreciation 8,000

Cutting table (new) 10,000
Loss 2,000
Cutting table (old) 20,000
To record cutting table exchange

Accumulated Depreciation 10,000

Refirgerator (new) 20,000
Cash 15,000
Gain 3,000
Refrigertor (old) 12,000
To record refrigerator exchange

Accumulated Depreciation 4,000

Freezer (new) 17,000
Loss 8,000
Cash 11,000
Freezer (old) 18,000
To record freezer exchange

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Name:
I-11.03
Date: Section:

GENERAL JOURNAL                                                                 

Date Accounts Debit Credit
Accumulated Depreciation 6,000
Computer (new) 5,000
Cash 1,000
Gain 4,500
computer (old) 7,500
To record computer exchange

Accumulated Dep 2,000

Fire Supressor (new) 3,000
Cash 2,000
Loss 2,000
Fire Supressor (old) 9,000
To record Fire supressor exchange

Accumulated Dep 2,500

Smoker oven (new) 13,000
Smoker oven (old) 12,500
Gain 3,000

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Name:
I-11.03
Date: Section:

Cost AccumulatedCash Given orFair Value of New Item

Sink 10000 6500 0 5000

Cutting table 20000 8000 0 10000

Refrigerator 12000 10000 15000 20000

Freezer 18000 4000 11000 17000

Computer 7500 6000 -1000 5000

Fire suppressor 9000 2000 -2000 3000

Smoker oven 12500 2500 0 13000

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