Cost of new equipment in hands of Buffalo company is
Cost of new equipment = Carrying value of machine exchanged + cash = [(84,900 - 46,900) + 600] = $38,600
In books of Buffalo company.
S.No | Account details and explanation | Debit | Credit |
Equipment (New) | $38,600 | ||
Accumulated Depreciation | $46,900 | ||
Equipment (old) | $84,900 | ||
Cash | $600 |
In books of Carla Ltd.
S.No | Account details and explanation | Debit | Credit |
Equipment (New) | $42,000 | ||
Accumulated Depreciation | $40,900 | ||
Cash | $600 | ||
Loss on exchange | $1,500 | ||
equipment (old) | 84,900 |
Buffalo Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Ca...
Carla Company exchanged equipment used in its manufacturing operations plus $3,420 in cash for similar equipment used in the operations of Sarasota Company. The following information pertains to the exchange. Carla Co. Sarasota Co. Equipment (cost) $31,920 $31,920 Accumulated depreciation 21,660 11,400 Fair value of equipment 14,250 17,670 Cash given up 3,420 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...
Could somebody help me with this?
Stellar Company exchanged equipment used in its manufacturing
operations plus $3,720 in cash for similar equipment used in the
operations of Pearl Company. The following information pertains to
the exchange.
Question 5 View Policies Current Attempt in Progress Stellar Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment used in the operations of Pearl Company. The following information pertains to the exchange. Stellar Co. Pearl Co. Equipment (cost)...
Sweet Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Pharoah Ltd. The following information pertains to the exchange: Sweet Corp. Pharoah Ltd. Equipment (cost) $84,400 $84,400 Accumulated depreciation 46,100 41,000 Fair value of old equipment 42,500 43,000 Cash given up 500 Both companies agreed that the exchange did not have commercial substance. Prepare the necessary journal entries to record the asset exchange on the books of both companies.
Metlock Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment used in the operations of Bonita Company. The following information pertains to the exchange. Bonita Co. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Metlock Co. $34,720 23,560 15,500 3,720 $34,720 12,400 19,220 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...
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...
Exercise 10-19 Indigo Company exchanged equipment used in its manufacturing operations plus $4,260 in cash for similar equipment used in the operations of Sweet Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Indigo Co $39,760 26,980 17,750 4,260 Sweet Co. $39,760 14,200 22,010 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...
Sunland Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment used in the operations of Coronado Company. The following information pertains to the exchange. Equipment (cost) Sunland Co. $34,720 23.560 15,500 3,720 Coronado Co. $34,720 12,400 19,220 Accumulated depreciation Fair value of equipment Cash given up 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...
Vaughn Company exchanged equipment used in its manufacturing operations plus $3,540 in cash for similar equipment used in the operations of Bramble Company. 1 information pertains to the exchange. Vaughn Bramble Equipment (cost) Accumulated depreciation $33,040 22,420 $33,040 11,800 Fair value of equipment 14.750 18.290 Cash given up 3.540 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 amount is entered....
Kingbird Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Kingbird Co $38,640 26,220 17,250 4,140 Oriole Co. $38,640 13,800 21,390 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...
Current Attempt in Progress Waterway Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Waterway Co Wildhorse Co. Equipment (cost) Accumulated depreciation $31,360 21,280 14,000 3,360 $31,360 11.200 17,360 Fair value of equipment Cash given up ally correct Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit...