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Presented below are two independent transactions. Both transactions have commercial substance Blue Spruce Co. exchanged old trucks (cost $66,000 less $21,500 accumulated depreciation) plus cash of 1. $16,000 for new trucks. The old trucks had a fair value of $41,400 Swifty Inc. trades its used machine (cost $10,500 less $3,500 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $10,100), Swifty also paid cash of $3,000. 2. *(a) Prepare the...
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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...
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Exercise 11-16 Presented below is information related to equipment owned by Windsor Company at December 31, 2020. Cost $9,720,000 Accumulated depreciation to date 1,080,000 Expected future net cash flows 7,560,000 Fair value 5,184,000 Assume that Windsor will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment of the asset...
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Brief Exercise 10-8 Sheffield Corporation
traded a used truck (cost $21,200, accumulated depreciation
$19,080) for a small computer with a fair value of $3,498.
Sheffield also paid $530 in the transaction. Prepare the journal
entry to record the exchange. (The exchange has commercial
substance.) (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
Brief Exercise 10-8 Sheffield...
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Sheffield Company uses special strapping equipment in its
packaging business. The equipment was purchased in January 2019 for
$11,700,000 and had an estimated useful life of 8 years with no
salvage value. At December 31, 2020, new technology was introduced
that would accelerate the obsolescence of Sheffield’s equipment.
Sheffield’s controller estimates that expected future net cash
flows on the equipment will be $7,371,000 and that the fair value
of the equipment is $6,552,000. Sheffield intends to continue using
the equipment,...
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Exercise 10-19 Sheffield Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Tamarisk Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Sheffield Co. $33,600 22,800 15,000 3,600 Tamarisk Co. $33,600 12,000 18,600 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...
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Presented below is information related to equipment owned by
Sheffield Company at December 31, 2020.
Cost
$10,530,000
Accumulated depreciation to date
1,170,000
Expected future net cash flows
8,190,000
Fair value
5,616,000
Assume that Sheffield will continue to use this asset in the
future. As of December 31, 2020, the equipment has a remaining
useful life of 4 years.
Partially correct answer iconYour answer is partially
correct.
Prepare the journal entry (if any) to record the impairment of
the asset at...
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Exercise 11-16 Presented below
is information related to equipment owned by Cheyenne Company at
December 31, 2017. Cost $10,800,000 Accumulated depreciation to
date 1,200,000 Expected future net cash flows 8,400,000 Fair value
5,760,000 Assume that Cheyenne will continue to use this asset in
the future. As of December 31, 2017, the equipment has a remaining
useful life of 5 years. Prepare the journal entry (if any) to
record the impairment of the asset at December 31, 2017. (If no
entry...
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Exercise 8-9 Cheyenne Company sells one product. Presented below is information for January for Cheyenne Company. Jan. Inventory 103units $5each 4 Sale 20 Purdhase 27 Sale 167 units at $7 each 108 units at 11 eadh Cheyenne uses the FIFO cost flow assumption. All purchases and sales are on account. Your answer is partially correct. Try again. Assume Cheyenne uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A...
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Brief Exercise 10-9 Your answer is partially correct. Try again. Sheridan Corporation traded a used truck (cost $20,000, accumulated depreciation 18,000) for a small computer worth $4,026. Sheridan also paid $610 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)...
Presented below are two independent transactions. Both transactions have commercial substance Blue Spruce Co. exchanged old trucks (cost $66,000 less $21,500 accumulated depreciation) plus cash of 1. $16,000 for new trucks. The old trucks had a fair value of $41,400 Swifty Inc. trades its used machine (cost $10,500 less $3,500 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $10,100), Swifty also paid cash of $3,000. 2. *(a) Prepare the...
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...
Exercise 11-16 Presented below is information related to equipment owned by Windsor Company at December 31, 2020. Cost $9,720,000 Accumulated depreciation to date 1,080,000 Expected future net cash flows 7,560,000 Fair value 5,184,000 Assume that Windsor will continue to use this asset in the future. As of December 31, 2020, the equipment has a remaining useful life of 5 years. Your answer is partially correct. Try again. Prepare the journal entry (if any) to record the impairment of the asset...
Brief Exercise 10-8 Sheffield Corporation
traded a used truck (cost $21,200, accumulated depreciation
$19,080) for a small computer with a fair value of $3,498.
Sheffield also paid $530 in the transaction. Prepare the journal
entry to record the exchange. (The exchange has commercial
substance.) (Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
Brief Exercise 10-8 Sheffield...
Exercise 10-19 Sheffield Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Tamarisk Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Sheffield Co. $33,600 22,800 15,000 3,600 Tamarisk Co. $33,600 12,000 18,600 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...
Exercise 11-16 Presented below
is information related to equipment owned by Cheyenne Company at
December 31, 2017. Cost $10,800,000 Accumulated depreciation to
date 1,200,000 Expected future net cash flows 8,400,000 Fair value
5,760,000 Assume that Cheyenne will continue to use this asset in
the future. As of December 31, 2017, the equipment has a remaining
useful life of 5 years. Prepare the journal entry (if any) to
record the impairment of the asset at December 31, 2017. (If no
entry...
Exercise 8-9 Cheyenne Company sells one product. Presented below is information for January for Cheyenne Company. Jan. Inventory 103units $5each 4 Sale 20 Purdhase 27 Sale 167 units at $7 each 108 units at 11 eadh Cheyenne uses the FIFO cost flow assumption. All purchases and sales are on account. Your answer is partially correct. Try again. Assume Cheyenne uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A...
Brief Exercise 10-9 Your answer is partially correct. Try again. Sheridan Corporation traded a used truck (cost $20,000, accumulated depreciation 18,000) for a small computer worth $4,026. Sheridan also paid $610 in the transaction. Prepare the journal entry to record the exchange, assuming the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)...