Homework Answers
Answer:
| Journal Entry for Client A's- Has Commercial Substance | ||
| Account Tittle | Debit($) | Credit($) |
| Machinery | 1,21,500 | |
| Accumulated Depreciation- Machienry-Client A | 38,300 | |
| Cash | 26,500 | |
| Machinery | 1,06,800 | |
| Gain on sale of Machienry (bf) | 26,500 | |
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You have two clients that are considering trading machinery with each other. Although the machines are...
Concept for Analysis 10-4 You have two clients that are considering trading machinery with each other....
Concept for Analysis 10-4 You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance to allow them to record gains. Here are the facts: Client A Client B Original cost $105,500 $144,500 Accumulated depreciation 44,800 30,000 Fair...
Send to Gradebook Question 1 View Policies Current Attempt in Progress You have two clients that...
Send to Gradebook Question 1 View Policies Current Attempt in Progress You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Original cost Accumulated depreciation Fair value...
I need help in the last one. You have two clients that are considering trading machinery...
I need help in the last one.
You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected ill indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Original cost Accumulated depreciation Fair value Cash received (paid) Client A Client B $ 105,700 $146,000...
Blossom Company purchased an electric wax melter on April 30, 2017, by trading in its old...
Blossom Company purchased an electric wax melter on April 30, 2017, 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 Cash paid Cost of old melter (5-year life, $994 salvage value) $22,436 14,200 15,904 8,946 7,384 Accumulated Depreciation-old melter (straight-line) Secondhand fair value of old melter Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and...
Teal Company purchased an electric wax melter on April 30, 2020, by trading in its old...
Teal Company purchased an electric wax melter on April 30, 2020, 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 $19,276 Cash paid 12,200 Cost of old melter (5-year life, $854 salvage value) 13,664 Accumulated Depreciation-old melter (straight-line) 7,686 Secondhand fair value of old melter 6,344 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and...
Carla Company purchased an electric wax melter on April 30, 2020, by trading in its old...
Carla Company purchased an electric wax melter on April 30, 2020, 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 $23,384 Cash paid 14,800 Cost of old melter (5-year life, $1,036 salvage value) 16,576 Accumulated Depreciation-old melter (straight-line) 9,324 Secondhand fair value of old melter 7,696 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and...
Oriole Company purchased an electric wax melter on April 30, 2017, by trading in its old...
Oriole Company purchased an electric wax melter on April 30,
2017, 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
$18,328
Cash paid
11,600
Cost of old melter (5-year life, $812 salvage value)
12,992
Accumulated Depreciation-old melter (straight-line)
7,308
Secondhand fair value of old melter
6,032
Prepare the journal entries necessary to record this exchange,
assuming that the exchange (a) has commercial substance, and...
Marin Company purchased an electric wax melter on April 30, 2020, by trading in its old...
Marin Company purchased an electric wax melter on April 30, 2020, 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 $17,380 Cash paid 11,000 Cost of old melter (5-year life, $770 salvage value) 12,320 Accumulated Depreciation-old melter (straight-line) 6,930 Secondhand fair value of old melter 5,720 Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and...
Oriole Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment...
Oriole Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment used in the operations of Waterway Company. The following information pertains to the exchange. Oriole Waterway Co. Co. $30,800 $30,800 Equipment (cost) 20,900 11,000 Accumulated depreciation Fair value of equipment 17,050 13,750 Cash given up 3,300 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when...
8. (8 points) This machinery was acquired by trading in used machinery. Facts concerning the trade-in...
8. (8 points) This machinery was acquired
by trading in used machinery. Facts concerning the trade-in are as
follows. Cost of machinery traded (old machine) $100,000
Accumulated depreciation to date of sale (old machine) 40,000 Fair
value of machinery traded (old machine) 83,000 Cash received 12,000
Fair value of machinery acquired (new machine) 71,000 Record the
journal entry for the above nonmonetary asset exchange for the
following scenarios: a. The transaction has commercial substance.
b. The transaction lacks commercial substance...
Concept for Analysis 10-4 You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance to allow them to record gains. Here are the facts: Client A Client B Original cost $105,500 $144,500 Accumulated depreciation 44,800 30,000 Fair...
Send to Gradebook Question 1 View Policies Current Attempt in Progress You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected cash flows on the exchanged assets will indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Original cost Accumulated depreciation Fair value...
I need help in the last one.
You have two clients that are considering trading machinery with each other. Although the machines are different from each other, you believe that an assessment of expected ill indicate the exchange lacks commercial substance. Your clients would prefer that the exchange be deemed to have commercial substance, to allow them to record gains. Here are the facts: Original cost Accumulated depreciation Fair value Cash received (paid) Client A Client B $ 105,700 $146,000...
Blossom Company purchased an electric wax melter on April 30, 2017, 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 Cash paid Cost of old melter (5-year life, $994 salvage value) $22,436 14,200 15,904 8,946 7,384 Accumulated Depreciation-old melter (straight-line) Secondhand fair value of old melter Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and...
Oriole Company purchased an electric wax melter on April 30,
2017, 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
$18,328
Cash paid
11,600
Cost of old melter (5-year life, $812 salvage value)
12,992
Accumulated Depreciation-old melter (straight-line)
7,308
Secondhand fair value of old melter
6,032
Prepare the journal entries necessary to record this exchange,
assuming that the exchange (a) has commercial substance, and...
Oriole Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment used in the operations of Waterway Company. The following information pertains to the exchange. Oriole Waterway Co. Co. $30,800 $30,800 Equipment (cost) 20,900 11,000 Accumulated depreciation Fair value of equipment 17,050 13,750 Cash given up 3,300 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when...
8. (8 points) This machinery was acquired
by trading in used machinery. Facts concerning the trade-in are as
follows. Cost of machinery traded (old machine) $100,000
Accumulated depreciation to date of sale (old machine) 40,000 Fair
value of machinery traded (old machine) 83,000 Cash received 12,000
Fair value of machinery acquired (new machine) 71,000 Record the
journal entry for the above nonmonetary asset exchange for the
following scenarios: a. The transaction has commercial substance.
b. The transaction lacks commercial substance...
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