Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Equipment 14400 Accumulated Depreciation-Equipment 22800 Equipment 33600

Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Equipment 14400 Accumulated Depreciation-Equipment 22800 Equipment 33600

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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Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Equipment 14400
Kingbird Company exchanged equipment used in its manufacturing operations plus $ 3,600 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $ 33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Oriole Company:
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.
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 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 O for the amounts, List all debit entries before credit entries) Account Titles and Explanation Debit Credit
Beck Company and Train Corporation exchange equipment. Relevant information are as follows: Beck Train Equipment 2,000,000 2,500,000 Accumulated depreciation 1,125,000 1,687,500 Fair value 750,000 1,000,000 Cash payment/(received) 250,000 (250,000) Beck Company also traded an old equipment with a dealer for a newer model. Relevant information are as follows:Old equipment:Cost P1,400,000Accumulated depreciation 1,000,000Fair value 350,000Trade in value 500,000New equipment:List price P2,000,000Trade in value of old equipment (500,000)Cash payment P1,500,000Required1. Prepare journal entries related to the exchange using the following assumptions:a) Fair value approachb) Trade in value approach
Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine has a estimated fair market of $36,000. The transaction has commercial substance. Regarding the journal entry to record the exchange, what value will be assigned to the delivery truck? O 36,000 O 44,000 O 54,000 O 34,000 Question 17 The cost of training employees to operate newly acquired machinery are usually capitalized as part of the acquisition value of the asset. O True
Grouper Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Grouper Co. Monty Co. Equipment (cost) $38,640 $38,640 Accumulated depreciation 26,220 13,800 Fair value of equipment 17,250 21,390 Cash given up 4,140
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…
Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.
FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown below: FEEBLECo. WEAK,Inc. Equipment 4,000,000 8,000,000Accumulated depreciation 800,000 3,200,000Carrying amount 3,200,000 4,800,000Fair value ? 4,400,000Cash paid by FEEBLE to WEAK 600,000 600,000In FEEBLE’s books, what amounts are recognized for the following?Equipment Gain (Loss)a. 5,000,000 1,200,000b. 4,400,000 600,000c. 3,800,000 1,200,000d. 3,400,000 (600,000)Use the following information for the next three questions:Altitude Company purchased a plot of land for ₱2,000,000 as a plant site. There was a small officebuilding on the plot, conservatively appraised at ₱700,000 which the company will continue to use withsome modification and renovation.The renovation had plans drawn for a factory and received bids for its construction. It rejected all bidsand decided to construct the plant itself. Below are listed additional items that management feels shouldbe included in the property, plant and equipment…
Sheffield Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash. The old machine cost $478000 and had a net book value of $343000. The old machine had a fair value of $310000.Which of the following is the correct journal entry to record the exchange assuming commercial substance? Equipment 659500 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Equipment 356500 Equipment 310000 Cash 46500 Equipment 356500 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Cash 46500 Equipment 310000 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 524500
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…