12:34 Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Transaction 1 Equipment (Delivery) Equipment (Restaurant) Cash Gain Answer is not complete. General Journal 3000 Debit 15,600 7,900 8,400 Credit 24,000

12:34 Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Transaction 1 Equipment (Delivery) Equipment (Restaurant) Cash Gain Answer is not complete. General Journal 3000 Debit 15,600 7,900 8,400 Credit 24,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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auisitions Problem 23-5 (IAA) 1. Nutty Company made the following individual cash purchases: 000,000 taken. Land and building Machinery and office Delivery equipment 6,000,000 1,800,000 500,000 equipment the old lachine An appraisal disclosed the following fair value: 1,000,000 3,000,000 800,000 400,000 350,000 Land entity onthly chine Building Machinery Office equipment Delivery equipment 2. Nutty Company acquired the assets of another entity with the following fair value: sed a rest The 1,000,000 5,000,000 2,000,000 Land Building Machinery The entity issued 60,000 shares with P100 par value in exchange. The share had a quoted price of P150 on the date of purchase of the property. of ary 3. Received a parcel of land located in Davao City from a philanthropist as an inducement to locate a plant in the city. The land has a fair value of P1,500,000. is- 4. The entity paid cash for machinery, P900,000 subject to 2% cash discount, and freight on machinery, P35,000. 5. The entity acquired…
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