During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of $127,800 (original cost $198,800 less accumulated depreciation $71,000) for a new crane from Pina Manufacturing Inc. The new crane cost Pina $234,300 to manufacture and is classified as inventory. The following information is also available. Fair value of old crane Fair value of new crane Cash paid Cash received Ayayai Const. $116,440 167,560 Pina Mfg. Inc. $284,000 167,560 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Ayayai Construction and (2) Pina Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent

During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of $127,800 (original cost $198,800 less accumulated depreciation $71,000) for a new crane from Pina Manufacturing Inc. The new crane cost Pina $234,300 to manufacture and is classified as inventory. The following information is also available. Fair value of old crane Fair value of new crane Cash paid Cash received Ayayai Const. $116,440 167,560 Pina Mfg. Inc. $284,000 167,560 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Ayayai Construction and (2) Pina Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent

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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