Blossom Company exchanged equipment used in its manufacturing operations plus $4,380 in cash for similar equipment used in the operations of Blue Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Blossom Co. $40,880 27,740 18,250 4,380 Blue Co. Account Titles and Explanation Blossom Company: $40,880 14,600 22,630 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. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Debit 1000 Credit JIN

Blossom Company exchanged equipment used in its manufacturing operations plus $4,380 in cash for similar equipment used in the operations of Blue Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Blossom Co. $40,880 27,740 18,250 4,380 Blue Co. Account Titles and Explanation Blossom Company: $40,880 14,600 22,630 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. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Debit 1000 Credit JIN

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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Information has been collected regarding Orange Company’s cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company’s cash-generating unit are shown as follows (in millions) on the company’s SFP: Cost Accumulated Depreciation Net Book Value Goodwill $ 1,360 $ 0 $ 1,360 Equipment 4,850 3,150 1,700 Building 7,320 2,330 4,990 Patent rights 1,290 320 970 $ 14,820 $ 5,800 $ 9,020     An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $6,200 million. The assets are not separable—they must be operated or sold together as a group.Required:1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e.…
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Information has been collected regarding Orange Company’s cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company’s cash-generating unit are shown as follows (in millions) on the company’s SFP: Cost Accumulated Depreciation Net Book Value Goodwill $ 1,360 $ 0 $ 1,360 Equipment 4,850 3,150 1,700 Building 7,320 2,330 4,990 Patent rights 1,290 320 970 $ 14,820 $ 5,800 $ 9,020     An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $6,200 million. The assets are not separable—they must be operated or sold together as a group.Required:1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e.…
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Information has been collected regarding Orange Company's cash-generating unit that includes goodwill. At 31 December 20X5, the assets of the Orange Company's cash-generating unit are shown as follows (in millions) on the company's SFP: Goodwill Equipment Building Patent rights Cost $ 1,240 4,400 6,640 2,040 $14,320 Accumulated Depreciation $ 2,900 2,170 290 $5,360 Net Book Value $1,240 1,500 4,470 1,750 $8,960 An impairment test indicates that the recoverable amount assigned to the assets of this CGU is $5,600 million. The assets are not separable-they must be operated or sold together as a group. Required: 1. Prepare an adjusting journal entry to record the impairment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate percentage answers to the nearest whole number (i.e. 0.12 should be considered as 12%) and final answers to the nearest whole dollar amount. Enter the amounts in millions.) View…