For each of the above independent scenarios, prepare the journal entry necessary to record the transaction, assuming that Riverbed follows IFRS

Riverbed is a cologne retailer. During 2020, Riverbed had the following non-monetary transactions.

Scenario 1: Riverbed exchanged 4,500 of its common shares (FMV of $9 each) for equipment with a FMV of $45,000.

Scenario 2: Riverbed traded machinery with a cost of $14,700 and accumulated depreciation of $5,880 for an inventory management equipment owned by Francis Inc. which is expected to help increase the speed with which Riverbed fills its orders. An additional $3,200 was paid by Riverbed in the exchange. The inventory management equipment has a cost of $18,600 and accumulated depreciation of $11,160 on Francis’ accounting records. Fair values for the machinery and the inventory management equipment are $9,820 and $13,020 respectively.

For each of the above independent scenarios, prepare the journal entry necessary to record the transaction, assuming that Riverbed follows IFRS

Hint: Scenario 1: 2 entries

Scenario 2: 5 entries