On August 1, Vaughn, Inc. exchanged productive assets with Bramble, Inc. Vaughn's asset is referred to below as "Asset A," and Bramble' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Vaughn, Inc. Cash received by Bramble, Inc. (a) Asset A Account Titles and Explanation Vaughn, Inc.'s Books $144,000 60,000 90,000 22,500 Asset B $165,000 70,500 112,500 22,500 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Vaughn, Inc. and Bramble, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.) Debit Credit

On August 1, Vaughn, Inc. exchanged productive assets with Bramble, Inc. Vaughn's asset is referred to below as "Asset A," and Bramble' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Vaughn, Inc. Cash received by Bramble, Inc. (a) Asset A Account Titles and Explanation Vaughn, Inc.'s Books $144,000 60,000 90,000 22,500 Asset B $165,000 70,500 112,500 22,500 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Vaughn, Inc. and Bramble, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.) 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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Question

On August 1, Vaughn, Inc. exchanged productive assets with Bramble, Inc. Vaughn's asset is referred to below as "Asset A," and
Bramble' is referred to as "Asset B." The following facts pertain to these assets.
Original cost
Accumulated depreciation (to date of exchange)
Fair value at date of exchange
Cash paid by Vaughn, Inc.
Cash received by Bramble, Inc.
(a)
Asset A
Account Titles and Explanation
Vaughn, Inc.'s Books
$144,000
60,000
90,000
22,500
Asset B
$165,000
70,500
112,500
22,500
Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Vaughn, Inc. and
Bramble, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275.
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.)
Debit
Credit

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