Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for similar equipment used in theoperations of Sheridan Company. The following information pertains to the exchange.Equipment (cost)Accumulated depreciationFair value of equipmentCash given up(a)Windsor Co.$32,48022,04014,5003,480*Sheridan Co.$32,48011,60017,980Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercialsubstance. (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, List all debit entries before credit entries)Account Titles and ExplanationDebitCredit Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercialsubstance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, selec"No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)Account Titles and ExplanationWindsor Company:Sheridan Company:DebitCredit

Journal Entry is the primary step to record the transaction in the books of accounts. The increase…

Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for similar equipment used in the operations of Sheridan Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Windsor Co. $32,480 22,040 14,500 3,480 * Sheridan Co. $32,480 11,600 17,980 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial Do not indent manually. If no entry is required, select

Windsor Company exchanged equipment used in its manufacturing operations plus $3,480 in cash for similar equipment used in the operations of Sheridan Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Windsor Co. $32,480 22,040 14,500 3,480 * Sheridan Co. $32,480 11,600 17,980 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial Do not indent manually. If no entry is required, select

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 29P

See similar textbooks

Similar questions

Cullumber Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for similar equipment used in the operations of Riverbed Company. The following information pertains to the exchange. Cullumber Co. Riverbed Co. Equipment (cost) $40,320 $40,320 Accumulated depreciation 27,360 14,400 Fair value of equipment 18,000 22,320 Cash given up 4,320 (a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Cullumber Company: enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a…
equipment of Frown Company. The following information Smile Company exchanged used equipment for another pertains to the exchange: Smile Frown Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,000 1,750,000 500,000 Required: Prepare journal entry on the books of Smile and Frown.
Stellar Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Pearl Company. The following information pertains to the exchange. Stellar Co. Pearl Co. Equipment (cost) $36,960 $36,960 Accumulated depreciation 25,080 13,200 Fair value of equipment 16,500 20,460 Cash given up 3,960 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Stellar Company: enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title…
Bossie Company exchanged equipment used in its manufacturing operations plus Rwf 3,000 in cash for similar equipment used in the operations of Veryvey Company. The following information pertains to the exchange. Bossie Co. Veryvey Co. Equipment (cost) Rwf 40,000 Rwf 40,000 Accumulated depreciation 31,000 22,000 Fair value of equipment 24,500 27,500 Cash given up 3,000 Required: Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. State any four indicators of impairment as outlined by IAS 36: Impairment of Assets.
Flint Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for similar equipment used in the operations of Buffalo Company. The following information pertains to the exchange. Flint Co. Buffalo Co. Equipment (cost) $31,360 $31,360 Accumulated depreciation 21,280 11,200 Fair value of equipment 14,000 17,360 Cash given up 3,360 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Flint Company: Buffalo Company:…
Mathews Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar equipment used in the operations of Biggio Company. The following information pertains to the exchange. Mathews Co. Biggio Co. Equipment (cost) $54,000 $44,000 Accumulated depreciation $36,000 $18,000 Fair value of equipment $25,000 $31,000 Cash given up $6,000 Instructions (a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
The following assets are exchanged between Company A and Company B: Company A Company B Asset original cost $53,400 $65,100 Accumulated depreciation 32,630 39,600 Net book value 20,770 25,500 Fair value of asset 24,200 28,600 In addition, Company A paid Company B $4,400 cash.Required:Prepare the journal entry to record the transaction for Company A and B
Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of 16,000 for another nonmonetary asset worth 12,000. Ashton also received 1,400 cash. In the entry to record this exchange, Ashton should record a: a. 2,000 gain b. 2,000 loss c. 600 gain d. 600 loss
Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of LoBianco Company. The following information pertains to the exchange. Carlos Arruza Co. LoBianco Co. Equipment (cost) $28,000 $28,000 Accumulated depreciation 19,000 10,000 Fair value of equipment 12,500 15,500 Cash given up 3,000 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 0 for the amounts.)
Nash Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Crane Company. The following information pertains to the exchange Nash Co Crane Co $29,120 $29,120 19,760 10,400 13,000 16,120 3,120 Equipment (cost) Accumulated depreciation Fair value of equipment Cash giving up I Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 0 for the amounts. List all debit entries before credit entries.) Account titles and explanation Nash Company Equipment Accumulated depreciation equipment Equipment Cash Debit Crane Company? 12480 19760 Credit Crane company Equipment Accumulated Depreciation-Equipment Loss on Disposal of Equipment Cash Equipment B. Prepare the journal…
Blue Spruce Inc. trades its used machine (cost $11,900 less $4,100 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $11,000), Blue Spruce also paid cash of $3,200. Prepare journal entry to record exchange of assets by Blue Spruce Inc.
Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment used in the operations of Cheyenne Company. The following information pertains to the exchange. Crane Co. Cheyenne Co. Equipment (cost) $30,800 $30,800 Accumulated depreciation 20,900 11,000 Fair value of equipment 13,750 17,050 Cash given up 3,300 1) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. 2) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance.