E10-18 (nonmonetary exchange) montgomery company purchased an

Get your original paper written from scratch starting at just $10 per page with a plagiarism report and free revisions included!










Hire A Writer

E10-18 (Nonmonetary Exchange) Montgomery Company purchased an electric wax melter on April 30, 2013, 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 residual value) 12,700

Accumulated depreciation old melter (straight-line) 7,200

Secondhand fair value of old melter 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. Montgomerys year ends on December 31, and depreciation has been recorded through December 31, 2012.

Stay Anonymous
With Our Essay Writing Service

The aim of our service is to provide you with top-class essay help when you ask us to write my paper; we do not collect or share any of your personal data. We use the email you provide us to send you drafts, final papers, and the occasional promotion and discount code, but that’s it!

Order Now