Please include all the calculations for my reference. Thanks Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.Belmont paid Aylmer $4,000 cash as part of the deal.|The following information relates to the assets of the two companies at the time of the exchange.Aylmer Inc.$61,000$44,000$23,000Belmont Inc.Equipment (cost)Accumulated Depreciation$71,000$58,000$19,000Fair value of the equipmentInstructions:a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance.DateDescriptionDrCrb) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance.DateDescriptionDrCr

(a.) Description Debit Credit Equipment (new) A/c $19,000 Accumulated…

Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc. Belmont paid Aylmer $4,000 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange. Aylmer Inc. $61,000 Belmont Inc. Equipment (cost) Accumulated Depreciation Fair value of the equipment $44,000 $23,000 $71,000 $58,000 $19,000 Instructions: | a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance. Date Description Dr Cr b) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance. Date Description Dr Cr

Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc. Belmont paid Aylmer $4,000 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange. Aylmer Inc. $61,000 Belmont Inc. Equipment (cost) Accumulated Depreciation Fair value of the equipment $44,000 $23,000 $71,000 $58,000 $19,000 Instructions: | a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance. Date Description Dr Cr b) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance. Date Description Dr Cr

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?
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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.