he first ration, which manufactures shoes, hired a recent college graduate to work in its accounting department. On day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sheffield Corporation gave the machine plus $456 to Tamarisk Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Machine cost Accumulated depreciation Fair value Sheffield Corp. (Old Machine) $389 Account Titles and Explanation Sheffield Corporation 188 Tamarisk Business Machine Company 114 Tamarisk Co. (New Machine) $362 -0- For each company, prepare the necessary journal entry to record the exchange. (The exchange has 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.) 570 Debit Credit

he first ration, which manufactures shoes, hired a recent college graduate to work in its accounting department. On day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sheffield Corporation gave the machine plus $456 to Tamarisk Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Machine cost Accumulated depreciation Fair value Sheffield Corp. (Old Machine) $389 Account Titles and Explanation Sheffield Corporation 188 Tamarisk Business Machine Company 114 Tamarisk Co. (New Machine) $362 -0- For each company, prepare the necessary journal entry to record the exchange. (The exchange has 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.) 570 Debit Credit

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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A large company has hired your friend. She tells you that her boss has asked customers to sign sales agreements just before year end indicating a sale has been made.The boss told customers that he will give them 30 days (well into the next year) to change their minds. If they do not change their minds they will quickly receive the merchandise. If they do change their minds he promised to cancel their orders, take merchandise back, and cancel the invoices.Your friend has been told by her boss to recognize the sales agreements as revenue this year. Your friend has concerns about recognizing revenue before the merchandise is shipped. She likes the company and wants to keep her job.What do you advise her to do?
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How do I fill in the table properly?
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $450,000 on credit. On August 15, Paige paid Lindley in full on its $450,000 balance.
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