Scenario 1 Scenario 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

help me 

Scenario 1
Scenario 2
Transcribed Image Text:Scenario 1 Scenario 2
Whispering is a cologne retailer. During 2023, Whispering had the following non-monetary transactions.
Scenario 1: Whispering exchanged 4,800 of its common shares (FMV of $10 each) for equipment with a FMV of $52,800.
Scenario 2: Whispering traded machinery with a cost of $13,700 and accumulated depreciation of $5,480 for a piece of inventory
management equipment owned by Francis Inc.. The equipment is expected to help increase the speed with which Whispering fills its
orders. An additional $3,100 was paid by Whispering in the exchange. The inventory management equipment has a cost of $21,100
and accumulated depreciation of $12,660 on Francis' accounting records. Fair values for the machinery and the inventory
management equipment are $9,320 and $12,420 respectively.
For each of the above independent scenarios, prepare the journal entry necessary to record the transaction, assuming that Whispering
follows IFRS. (Credit account titles are automatically indented when the 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.)
Transcribed Image Text:Whispering is a cologne retailer. During 2023, Whispering had the following non-monetary transactions. Scenario 1: Whispering exchanged 4,800 of its common shares (FMV of $10 each) for equipment with a FMV of $52,800. Scenario 2: Whispering traded machinery with a cost of $13,700 and accumulated depreciation of $5,480 for a piece of inventory management equipment owned by Francis Inc.. The equipment is expected to help increase the speed with which Whispering fills its orders. An additional $3,100 was paid by Whispering in the exchange. The inventory management equipment has a cost of $21,100 and accumulated depreciation of $12,660 on Francis' accounting records. Fair values for the machinery and the inventory management equipment are $9,320 and $12,420 respectively. For each of the above independent scenarios, prepare the journal entry necessary to record the transaction, assuming that Whispering follows IFRS. (Credit account titles are automatically indented when the 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.)
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Presentation of Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education