Question

Problems 485 5 P10-s (Non-donetary- Exchanges) Holyfield Corporation wishes to exchange a machine used in its operations. Holyfield has received the following offers from other companies in the industry. 1. Dorsett Company offered to exchange a similar machine plus 23,000. (The exchange has commercial 2. Winston Company offered to exchange a similar machine. (The exchange lacks commercial substance 3. Liston Company offered to exchange a similar machine but wanted 3,000 in addition to Holyfield's 4. In addition, Holyfield contacted Greeley Corporation, a dealer in machines. To obtain a new substance for both parties.) for both parties.) machine. (The exchange has commercial substance for both parties.) Holyfield must pay 93,000 in addition to trading in its old machine. Holyfield Dorsett Winston Liston Greeley 160,000 120,000 152,000 160,000 130,000 Machine cost Accumulated depreciation Fair value 75,000 45,000 69,00092,000 71,000 60,000 92,000 95,000185,000 Instructions For each of the four independen sitraions, prepare the journal entries to record the exchange on the books of each company

Answer 1

Pasch, culaou々 adst Mackine 七 bo, oo o 93,๐๐๐ (L Mache Panticulas Machine Neu Cayh Machine old Deb化 七 ',30,000 ain on exchane To Recoid exchae machine

Dob Cieds Mochlne Neo 81, o oo Mochine -ed To Record the exchangeィMacHne) in a Particlaor Machine - No Accum ulated deprecation ebt 七 95,0 o, oo o om eschangeld machine ! ' 3,000 ca h C 3,ooo Macine- old I, 6o, ooo caladaior tela cos Cos Macttne !, 60, ooo Lew accumulates depaectationo, ooo Lovk vaa Machin 5,ooo 95,ooco lo, ooo 92, ooo 一81 000

SpoS Mackin e Paot-M1110レ CO Cest Machine 七 1,10,000 aceumuladed Ae -C Leis Bok vaeomachla e c 1.00,000 Less.at Valwe 2 o0o son dtsposal e -e 55,000 Machine