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On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' 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 Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O 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 O for the amounts.) Dobit Credit

On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' 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 Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O 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 O for the amounts.) Dobit Credit

FINANCIAL ACCOUNTING
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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On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' 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 Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation Wildhorse, Inc.'s Books $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O 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 O for the amounts.) Debit Credit
Transcribed Image Text:On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' 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 Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation Wildhorse, Inc.'s Books $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O 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 O for the amounts.) Debit Credit
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