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 Swifty $170,240 $179,200 $145,600 79,520 103.040 Nash 84,000 106,400 -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 Swifty $170,240 $179,200 $145,600 79,520 103.040 Nash 84,000 106,400 -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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Quill Corp. vs. North Dakota. and South Dakota vs. Wayfair, do you agree with these cases and why
A-1
What is a multiple-element contract? Give an example of such a contract. How does NZ IFRS 15 apply to such transactions?
Prior (Past) service cost is expensed immediately using a. U.S. GAAP. b. IFRS. c. Both U.S. GAAP and IFRS. d. Neither U.S. GAAP nor IFRS.
The requirements of a 'provision' or a 'contingent liability in compliance with MFRS137
Differentiate between IFRS vs. U.S. GAAP.
how do an annual bonus paid at year end be treated under IAS 34 and how does this treatment differ from what is required under U.S GAAP?
6. Net Benefit Expense for 20x6 7. Net Benefit Expense for 20x7 8. The Gain/(Loss) attributable to the FVPA for 20x8. 9. The Gain/(Loss) attributable to the Defined Benefit Obligation for 20x9. 10. The Debit/(Credit) to Other Comprehensive Income for 20x9.
What is the difference between the use of the term contingent liability in U.S. GAAP and IFRS?
2. Explain any four ways that render a contract voidable.
b) Briefly describe how the fair value model, as allowed by IAS 40, is applied.
53. Which type of warranty is/are accounted for as a separate performance obligation: 1- A normal warranty that the customer can purchase the warranty separately, 2- A normal warranty that provides a service in addition to assurance that the product complies with specifications, 3- A normal warranty that provides assurance that the product complies with specifications Select one: а. b. 2 C. 1 d. 1 and 3 е. 1 and 2