Skysong Corporation wishes to exchange a machine used in its operations. Skysong has received the following offers from other companies in the industry. 1. Concord Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both parties] 2 3 Marigold Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Swifty Company offered to exchange a similar machine, but wanted $3,360 in addition to Skysong's machine. (The exchange has commercial substance for both parties) In addition, Skysong contacted Nash Corporation, a dealer in machines. To obtain a new machine, Skysong must pay $104,160 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Skysong $179,200 67,200 103,040 Concord $134,400 50,400 77,280 Marigold $170,240 79,520 103,040 Swifty $179,200 84,000 106,400 Nash $145,600 -0- 207,200 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the
Skysong Corporation wishes to exchange a machine used in its operations. Skysong has received the following offers from other companies in the industry. 1. Concord Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both parties] 2 3 Marigold Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties.) Swifty Company offered to exchange a similar machine, but wanted $3,360 in addition to Skysong's machine. (The exchange has commercial substance for both parties) In addition, Skysong contacted Nash Corporation, a dealer in machines. To obtain a new machine, Skysong must pay $104,160 in addition to trading in its old machine. Machine cost Accumulated depreciation Fair value Skysong $179,200 67,200 103,040 Concord $134,400 50,400 77,280 Marigold $170,240 79,520 103,040 Swifty $179,200 84,000 106,400 Nash $145,600 -0- 207,200 For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Skysong Corporation wishes to exchange a machine used in its operations. Skysong has received the following offers from other
companies in the industry.
1
2
3.
Concord Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both
parties]
Marigold Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties)
Swifty Company offered to exchange a similar machine, but wanted $3,360 in addition to Skysong's machine. (The exchange
has commercial substance for both parties)
In addition, Skysong contacted Nash Corporation, a dealer in machines. To obtain a new machine, Skysong must pay $104,160 in
addition to trading in its old machine.
Machine cost
Accumulated depreciation
Fair value
Skysong Concord Marigold Swifty
$134,400
$170,240 $179,200
$179,200
67,200
103,040
50,400
79.520
77,280 103.040 106,400
84,000
Nash
$145.600
-0-
207.200
For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3c134ff-b7ac-4f59-841d-6bdd50fc3944%2F30263ac7-6705-405a-bd12-a64333bcb364%2F52ny04q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Skysong Corporation wishes to exchange a machine used in its operations. Skysong has received the following offers from other
companies in the industry.
1
2
3.
Concord Company offered to exchange a similar machine plus $25,760. (The exchange has commercial substance for both
parties]
Marigold Company offered to exchange a similar machine. (The exchange lacks commercial substance for both parties)
Swifty Company offered to exchange a similar machine, but wanted $3,360 in addition to Skysong's machine. (The exchange
has commercial substance for both parties)
In addition, Skysong contacted Nash Corporation, a dealer in machines. To obtain a new machine, Skysong must pay $104,160 in
addition to trading in its old machine.
Machine cost
Accumulated depreciation
Fair value
Skysong Concord Marigold Swifty
$134,400
$170,240 $179,200
$179,200
67,200
103,040
50,400
79.520
77,280 103.040 106,400
84,000
Nash
$145.600
-0-
207.200
For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
Transcribed Image Text:No. Account Titles and Explanation
1. Skysane Corporation
Concord Company
Debit
Credit
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