Answer in table form Mathews Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar equipment used in theoperations of Biggio Company.The following information pertains to the exchange.Mathews Co. Biggio Co.Equipment (cost)$54,000$44,000Accumulated depreciation $36,000$18,000Fair value of equipment $25,000$31,000Cash given up$6,000Instructions(a) Prepare the journal entries to record the exchange on the books of both companies.Assume that the exchange has commercial substance.(b) Prepare the journal entries to record the exchange on the books of both companies.Assume that the exchange lacks commercial substance.

Answer and Explanation: When a transaction has commercial substance:Books of the Mathews…

Answered: Mathews Company exchanged equipment…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of 16,000 for another nonmonetary asset worth 12,000. Ashton also received 1,400 cash. In the entry to record this exchange, Ashton should record a: a. 2,000 gain b. 2,000 loss c. 600 gain d. 600 loss
Bossie Company exchanged equipment used in its manufacturing operations plus Rwf 3,000 in cash for similar equipment used in the operations of Veryvey Company. The following information pertains to the exchange. Bossie Co. Veryvey Co. Equipment (cost) Rwf 40,000 Rwf 40,000 Accumulated depreciation 31,000 22,000 Fair value of equipment 24,500 27,500 Cash given up 3,000 Required: Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. State any four indicators of impairment as outlined by IAS 36: Impairment of Assets.
Grouper Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Grouper Co. Monty Co. Equipment (cost) $38,640 $38,640 Accumulated depreciation 26,220 13,800 Fair value of equipment 17,250 21,390 Cash given up 4,140
Mathews Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar equipment used in the operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. Equipment (cost) $54,000 $44,000 Accumulated depreciation $36,000 $18,000 Fair value of equipment $25,000 $31,000 Cash given up $6,000 Instructions (a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of LoBianco Company. The following information pertains to the exchange. Carlos Arruza Co. LoBianco Co. Equipment (cost) $28,000 $28,000 Accumulated depreciation 19,000 10,000 Fair value of equipment 12,500 15,500 Cash given up 3,000 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 0 for the amounts.)
Cullumber Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for similar equipment used in the operations of Riverbed Company. The following information pertains to the exchange. Cullumber Co. Riverbed Co. Equipment (cost) $40,320 $40,320 Accumulated depreciation 27,360 14,400 Fair value of equipment 18,000 22,320 Cash given up 4,320 (a) 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 0 for the amounts.) Account Titles and Explanation Debit Credit Cullumber Company: enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a…
Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of LoBianco Company. The following information pertains to the exchange. Arruza Co. LoBianco Co. Equipment (cost) $28,0000 0 $28,0000 Accumulated depreciation 0 19,0000 0 10,0000 Fair value of equipment 0 12,5000 0 15,5000 Cash given up 0 3,0000 0 0 Instructions a. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. b. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.
Stellar Company exchanged equipment used in its manufacturing operations plus $3,960 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) $36,960 $36,960 Accumulated depreciation 25,080 13,200 Fair value of equipment 16,500 20,460 Cash given up 3,960 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 0 for the amounts.) Account Titles and Explanation Debit Credit Stellar Company: enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title…
Beck Company and Train Corporation exchange equipment. Relevant information are as follows: Beck Train Equipment 2,000,000 2,500,000 Accumulated depreciation 1,125,000 1,687,500 Fair value 750,000 1,000,000 Cash payment/(received) 250,000 (250,000) Beck Company also traded an old equipment with a dealer for a newer model. Relevant information are as follows:Old equipment:Cost P1,400,000Accumulated depreciation 1,000,000Fair value 350,000Trade in value 500,000New equipment:List price P2,000,000Trade in value of old equipment (500,000)Cash payment P1,500,000Required1. Prepare journal entries related to the exchange using the following assumptions:a) Fair value approachb) Trade in value approach
Lax Company recently acquired two items of equipment. The transactions are described as follows: * * Acquired a press at an invoice price of P3,000,000 subject to a 5% cash discount which was taken. Costs of freight and insurance during shipment were P50,000 and installation cost amounted to P200,000. Acquired a welding machine at an invoice price of P2,000,000 subject to a 10% cash discount which was not taken. Additional welding supplies were acquired at a cost of P100,000. The increase in the equipment account as a result of the above transactions should be a. 4,900,000 b. 5,000,000 c. 5,100,000 d. 5,200,000.
Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for similar equipment used in the operations of Sheridan Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Windsor Co. $32,480 22,040 14,500 3,480 * Sheridan Co. $32,480 11,600 17,980 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) Account Titles and Explanation Debit Credit
Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment used in the operations of Cheyenne Company. The following information pertains to the exchange. Crane Co. Cheyenne Co. Equipment (cost) $30,800 $30,800 Accumulated depreciation 20,900 11,000 Fair value of equipment 13,750 17,050 Cash given up 3,300 1) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. 2) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.

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