Give me answer Question:Aussy Football Co. had a player contract with Jats thatis recorded in its books at $4,800,000 on September 1,2019. Day Football Co. had a player contract with Virtzthat is recorded in its books at $6,000,000 on September1, 2019. On this date, Aussy traded Jats to Day forVirtz and paid a cash difference of $600,000. The fairvalue of the Virtz contract was $7,200,000 on theexchange date. The exchange had no commercialsubstance. After the exchange, the Virtz contractshould be recorded in Aussy's books at $ ?

Step 1: Remove the old contract:Debit Accumulated Depreciation (if applicable) for the depreciation…

Answered: Question: Aussy Football Co. had a…

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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Marigold Football Co. had a player contract with Watts that is recorded in its books at $8350000 on July 1, 2020. Cullumber Football Co. had a player contract with Kurtz that is recorded in its books at $10750000 on July 1, 2020. On this date, Marigold traded Watts to Cullumber for Kurtz and paid a cash difference of $1075000. The fair value of the Kurtz contract was $12600000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Marigold's books at $9425000. $11825000. $12600000. $10750000.
Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $43,500 on a future date. Unless informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required: Assume the note indicates that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021. Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021. Assume instead that Seneca is to pay Arctic the $43,500 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on…
20. Colt Football Co. had a player contract with Watts that is recorded in its books at$3,600,000 on July 1, 2010. Day Football Co. had a player contract with Kurtzthat is recorded in its books at $4,500,000 on July 1, 2010. On this date, Colttraded Watts to Day for Kurtz and paid a cash difference of $450,000. The fairvalue of the Kurtz contract was $5,400,000 on the exchange date. The exchangehad no commercial substance. After the exchange, the Kurtz contract should berecorded in Colt's books ata. $4,050,000.b. $4,500,000.c. $4,950,000.d. $5,400,000.
Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on May 10, 2019. Cass manufactured the goods at a cost of $33,000. The contract is signed on April 15, 2019, at which time Dearborn pays Cass $25,000. Cass delivers the goods on May 10, 2019, and Dearborn pays the final $25,000 on that date. Required: 1. What is the transaction price? 2. Prepare Cass’s journal entries related to the contract with Dearborn.
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Zagat Inc. enters into an agreement on March 1, 2020, to sell Werner Metal Company aluminum ingots. As part of the agreement, Zagat also agrees to repurchase the ingots on May 1, 2020, at the original sales price of $200,000 plus 2%. Instructions a. Prepare Zagat's journal entry necessary on March 1, 2020. b. Prepare Zagat's journal entry for the repurchase of the ingots on May 1, 2020.

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