HF Had Asset a That Was Reflected in the Company

question 28

Essay

HF had asset A that was reflected in the company records as follows: Cost, $25,000; accumulated amortization, $20,000. Its market value: $6,000. HF acquired asset B that had a cash price of $13,500 and paid for it by trading in asset A plus paying cash boot of $8,000. Give the entry by HF to record the acquisition of asset B, assuming the two assets was:
(A) Similar:
(B) Dissimilar:

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Definitions:

Adjusted Cash Balance

The cash balance of a company after adjusting for outstanding checks and deposits in transit, giving a more accurate representation of available funds.

Notes Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest, to the holder of the note at a future date.

NSF Check

Non-Sufficient Funds Check; a check that cannot be processed because the account on which it is drawn does not have enough funds.

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, and overdrafts.