Answer:
Situation No. 1 | ||
Cheyenne Corporation | Ayayai | |
Book value of machinery | 1,34,000 | 1,00,500 |
Fair value | 1,23,280 | 92,460 |
Gain/(loss) on disposal of machinery | -10,720 | -8,040 |
Journal entry in books of Cheyenne Corporation | ||
Cash | $30,820 | |
Machinery | $92,460 | |
Accumulated Depreciation | $80,400 | |
Loss on disposal of machinery | $10,720 | |
Machinery | 2,14,400 | |
Journal entry in books of Ayayai Company | ||
Machinery | $123,280 | |
Accumulated Depreciation | $60,300 | |
Loss on disposal of machinery | $8,040 | |
Cash | $30,820 | |
Machinery | $160,800 | |
Situation No. 2 | ||
Journal entry in books of Cheyenne Corporation | ||
Machinery | $123,280 | |
Accumulated Depreciation | $80,400 | |
Loss on disposal of machinery | $10,720 | |
Machinery | $214,400 | |
Journal entry in books of Pina Company | ||
Machinery | $108,540 | |
Accumulated Depreciation | $95,140 | |
Machinery | $203,680 | |
Situation No. 3 | ||
Journal entry in books of Cheyenne Corporation | ||
Machinery | $127,300 | |
Accumulated Depreciation | $80,400 | |
Loss on disposal of machinery | $10,720 | |
Cash | $4,020 | |
Machinery | $214,400 | |
Journal entry in books of Grouper Company | ||
Machinery | $123,280 | |
Accumulated Depreciation | $100,500 | |
Cash | $4,020 | |
Gain on disposal of machinery | $13400 | |
Machinery | $214,400 | |
Situation No. 4 | ||
Journal entry in books of Cheyenne Corporation | ||
Machinery | $247,900 | |
Accumulated Depreciation | $80,400 | |
Loss on disposal of machinery | $10,720 | |
Cash | $124,620 | |
Machinery | $214,400 | |
Journal entry in books of Monty Corporation | ||
Cash | $124,620 | |
Used machine inventory | $123,280 | |
Sales | $247,900 | |
(To record Exchange of inventory) | ||
Cost of goods sold | $174,200 | |
Machinery inventory | $174,200 | |
(To record Cost of inventory) |
Cheyenne Corporation wishes to exchange a machine used in its operations. Cheyenne has recelved the following...
Crane Corporation wishes to exchange a machine used in its operations. Crane has received the following offers from other companies in the industry. 1. Cheyenne Company offered to exchange a similar machine plus $32,200. (The exchange has commercial substance for both parties.) 2. Ayayai Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Pina Company offered to exchange a similar machine, but wanted $4,200 in addition to Crane’s machine. (The exchange has commercial...
Pina Corporation wishes to exchange a machine used in its operations. Pina has received the following offers from other companies in the industry. 1. Grouper Company offered to exchange a similar machine plus $28,060. (The exchange has commercial substance for both parties.) 2. Monty Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Flounder Company offered to exchange a similar machine, but wanted $3,660 in addition to Pina’s machine. (The exchange has commercial...
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Sandhill Corporation wishes to exchange a machine used in its operations. Sandhill has received the following offers from other companies in the industry. 1. Teal Company offered to exchange a similar machine plus $28,980. (The exchange has commercial substance for both parties.) 2. Flint Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Buffalo Company offered to exchange a similar machine, but wanted $3,780 in addition to Sandhill’s machine. (The exchange has commercial...
Novak Corporation wishes to exchange a machine used in its operations. Novak has received the following offers from other companies in the industry. 1. Splish Company offered to exchange a similar machine plus $33,120. (The exchange has commercial substance for both parties.) 2. Blossom Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Blue Company offered to exchange a similar machine, but wanted $4,320 in addition to Novak’s machine. (The exchange has commercial...
Ivanhoe Corporation wishes to exchange a machine used in its operations. Ivanhoe has received the following offers from other companies in the industry. 1. Shamrock Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both parties.) 2. Bridgeport Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Indigo Company offered to exchange a similar machine, but wanted $3,360 in addition to Ivanhoe’s machine. (The exchange has commercial...
Sandhill Corporation wishes to exchange a machine used in its operations. Sandhill has received the following offers from other companies in the industry. 1. Teal Company offered to exchange a similar machine plus $33,580. (The exchange has commercial substance for both parties.) 2. Flint Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) 3. Buffalo Company offered to exchange a similar machine, but wanted $4,380 in addition to Sandhill’s machine. (The exchange has commercial...