Q.1 Colaw Company exchanges equipment with Eaton Company and Mantle Company exchanges equipment with Fiero Company....
Q.1
Colaw Company exchanges equipment with Eaton Company and Mantle Company exchanges equipment with Fiero Company. The following information pertains to the exchanges:
Colaw CompanyMantle Company
Equipment (cost)$114,000$96,000
Accumulated depreciation50,00045,000
Fair market value of the equipment75,00042,000
Cash paid45,000-0-
Instructions
Prepare the journal entries to record the exchanges on the books of Colaw Company and Mantle Company. The transaction has commercial substance.
Q.2
Dodd Delivery Company and Hess Delivery Company exchanged delivery trucks on January 1, 2011. Dodd's truck cost $84,000, had accumulated depreciation of $69,000, and has a fair market value of $9,000. Hess's truck cost $63,000, had accumulated depreciation of $54,000, and has a fair market value of $9,000.
Instructions
(a)Journalize the exchange for Dodd Delivery Company.
(b)Journalize the exchange for Hess Delivery Company
Homework Answers
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Q.1
Colaw Company exchanges equipment with Eaton Company and Mantle
Company exchanges equipment with Fiero Company....
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation...
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck. The fair value of the used truck has been determined at $10,000 and Bright...
Q.3 Prepare the journal entries to record the following transactions for Eklund Company which has a...
Q.3 Prepare the journal entries to record the following transactions for Eklund Company which has a calendar year end and uses the straight-line method of depreciation. a)On September 30, 2011, the company exchanged old delivery equipment and $24,000 for new delivery equipment. The old delivery equipment was purchased on January 1, 2009, for $84,000 and was estimated to have a $12,000 salvage value at the end of its 5-year life. Depreciation on the delivery equipment has been recorded through December...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000;...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company.
China Inn and Midwest Chicken exchanged assets. China Inn received a dellvery truck and gave equipment....
China Inn and Midwest Chicken exchanged assets. China Inn received a dellvery truck and gave equipment. The fair value and book value of the equipment were $17,000 and $10,000 (original cost of $35,000 less accumulated depreciation of $25,000), respectively To equalize market values of the exchanged assets, China Inn paid $8,000 in cash to Midwest Chicken. 1. At what amount did China Inn record the delivery truck? Delivery truck 2. How much gain or loss did China Inn recognize on...
Acquisition by Exchange transaction
On January 1, 2020, Ogiso Company exchanged its old delivery truck with Martin Dealers Inc, for a brand new equipment. The following information pertains to the delivery truck OgisoOriginal cost 500,000Accumulated depreciation ...
Splish Brothers’s Delivery Company and Overland’s Express Delivery exchanged delivery trucks on January 1, 2019. Splish...
Splish Brothers’s Delivery Company and Overland’s Express
Delivery exchanged delivery trucks on January 1, 2019. Splish
Brothers’s truck cost $22,500. It has accumulated depreciation of
$15,500 and a fair value of $3,300. Overland’s truck cost $10,000.
It has accumulated depreciation of $8,000 and a fair value of
$3,300. The transaction has commercial substance.
Your answer is partially correct. Try again.
Journalize the exchange for Splish Brothers’s Delivery Company.
(Credit account titles are automatically indented when
amount is entered. Do not...
Accounting in acquisition and disposition of property, plant and Equipment 1. Paxten Company decides to exchange...
Accounting in acquisition and disposition of property, plant and
Equipment
1. Paxten Company decides to exchange a machine used in its operations for a machine owned by Dorsett Company. Dorsett exchanged a machine plus $10,000 to Paxten Company. Dorsett Company's machine had a cost of $120,000 and accumulated depreciation of $45,000. Paxten Company's machine had a cost of $160,000 and accumulated depreciation of $70,000. The fair market value of Paxten Company's machine is $92,000. REQUIREMENT: RECORD THE ENTRY MADE BY...
Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300...
Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300 less $28,200 accumulated depreciation) and cash of $8,400 for a delivery truck. The machine is estimated to have a fair market value of $35,900. The cash flows related to the truck will be different from the cash flows generated from the use of the machine. Requirement Prepare the journal entry to record the exchange on the books of the Probst Company. (Record debits first,...
Brief Exercise 7-16 Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken...
Brief Exercise 7-16 Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $23,000 and $15,200 (original cost of $41,000 less accumulated depreciation of $25,800), respectively. To equalize market values of the exchanged assets, China Inn paid $7,700 in cash to Midwest Chicken. 1. At what amount did China Inn record the delivery truck? Delivery truck...
Brief Exercise 7-16 Account for the exchange of long-term assets (L07-6) China Inn and Midwest Chicken...
Brief Exercise 7-16 Account for the exchange of long-term assets (L07-6) China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $17,500 and $10,200 (original cost of $36,000 less accumulated depreciation of $25,800), respectively. To equalize market values of the exchanged assets, China Inn paid $8,100 in cash to Midwest Chicken 1. At what amount did China Inn record the delivery truck? Delivery truck...
Sample Non-monetary Exchange Questions 2. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company Gain Bright Company exchanges a used truck (Cost $30,000; Accumulated Depreciation $28,000) for a new truck. The fair value of the used truck has been determined at $10,000 and Bright...
Exchange has commercial substance 18 Due 1. Loss Bright Company exchanges a used truck (Cost $20,000; Accumulated Depreciation $2,000) for a new truck. The fair value of the used truck has been determined at $15,000 and Bright also pays $2,000 cash. Prepare the journal entry to record the exchange for Bright Company.
China Inn and Midwest Chicken exchanged assets. China Inn received a dellvery truck and gave equipment. The fair value and book value of the equipment were $17,000 and $10,000 (original cost of $35,000 less accumulated depreciation of $25,000), respectively To equalize market values of the exchanged assets, China Inn paid $8,000 in cash to Midwest Chicken. 1. At what amount did China Inn record the delivery truck? Delivery truck 2. How much gain or loss did China Inn recognize on...
Splish Brothers’s Delivery Company and Overland’s Express
Delivery exchanged delivery trucks on January 1, 2019. Splish
Brothers’s truck cost $22,500. It has accumulated depreciation of
$15,500 and a fair value of $3,300. Overland’s truck cost $10,000.
It has accumulated depreciation of $8,000 and a fair value of
$3,300. The transaction has commercial substance.
Your answer is partially correct. Try again.
Journalize the exchange for Splish Brothers’s Delivery Company.
(Credit account titles are automatically indented when
amount is entered. Do not...
Accounting in acquisition and disposition of property, plant and
Equipment
1. Paxten Company decides to exchange a machine used in its operations for a machine owned by Dorsett Company. Dorsett exchanged a machine plus $10,000 to Paxten Company. Dorsett Company's machine had a cost of $120,000 and accumulated depreciation of $45,000. Paxten Company's machine had a cost of $160,000 and accumulated depreciation of $70,000. The fair market value of Paxten Company's machine is $92,000. REQUIREMENT: RECORD THE ENTRY MADE BY...
Question Help Probst Company exchanged a used machine with a book value of $26,100 (cost $54,300 less $28,200 accumulated depreciation) and cash of $8,400 for a delivery truck. The machine is estimated to have a fair market value of $35,900. The cash flows related to the truck will be different from the cash flows generated from the use of the machine. Requirement Prepare the journal entry to record the exchange on the books of the Probst Company. (Record debits first,...
Brief Exercise 7-16 Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $23,000 and $15,200 (original cost of $41,000 less accumulated depreciation of $25,800), respectively. To equalize market values of the exchanged assets, China Inn paid $7,700 in cash to Midwest Chicken. 1. At what amount did China Inn record the delivery truck? Delivery truck...
Brief Exercise 7-16 Account for the exchange of long-term assets (L07-6) China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave equipment. The fair value and book value of the equipment were $17,500 and $10,200 (original cost of $36,000 less accumulated depreciation of $25,800), respectively. To equalize market values of the exchanged assets, China Inn paid $8,100 in cash to Midwest Chicken 1. At what amount did China Inn record the delivery truck? Delivery truck...
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