On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O decimal places, e.g. 5,275. 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.) Dobit Credit

On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc. Wildhorse's asset is referred to below as "Asset A," and Sheffield' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Wildhorse, Inc. Cash received by Sheffield, Inc. (a) Asset A Account Titles and Explanation $138,240 57,600 86,400 21,600 Asset B $158,400 67,680 108,000 21,600 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Wildhorse, Inc. and Sheffield, Inc. in accordance with generally accepted accounting principles. (Round answers to O decimal places, e.g. 5,275. 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.) Dobit Credit

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 22E

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On August 1, Vaughn, Inc. exchanged productive assets with Bramble, Inc. Vaughn's asset is referred to below as "Asset A," and Bramble' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Vaughn, Inc. Cash received by Bramble, Inc. (a) Asset A Account Titles and Explanation Vaughn, Inc.'s Books $144,000 60,000 90,000 22,500 Asset B $165,000 70,500 112,500 22,500 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Vaughn, Inc. and Bramble, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.) Debit Credit
On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Crane’s asset is referred to below as “Asset A,” and Cheyenne’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $117,120 $134,200 Accumulated depreciation (to date of exchange) 48,800 57,340 Fair value at date of exchange 73,200 91,500 Cash paid by Crane, Inc. 18,300 Cash received by Cheyenne, Inc. 18,300 Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Crane, Inc. and Cheyenne, Inc. in accordance with generally accepted accounting principles. Account Titles and Explanation Debit Credit Crane, Inc.’s Books Cheyenne, Inc.’s Books
On August 1, Tamarisk, Inc. exchanged productive assets with Vaughn, Inc. Tamarisk's asset is referred to below as "Asset A," and Vaughn' is referred to as "Asset B." The following facts pertain to these assets. Asset A Asset B Original cost $126,720 $145,200 Accumulated depreciation (to date of exchange) 52,800 62,040 Fair value at date of exchange 79,200 99,000 Cash paid by Tamarisk, Inc. 19,800 Cash received by Vaughn, Inc. 19,800 (a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Tamarisk, Inc. and Vaughn, Inc. in accordance with generally accepted accounting principles. (Round answers to O decimal places, e.g. 5,275. 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 Tamarisk, Inc's Books Debit Credit Vaughn,…
On August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred to below as “Asset A,” and Windsor’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $ 134,400 $ 154,000 Accumulated depreciation (to date of exchange) 56,000 65,800 Fair value at date of exchange 84,000 105,000 Cash paid by Bonita, Inc. 21,000 Cash received by Windsor, Inc. 21,000 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Bonita, Inc. and Windsor, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.) BONITA INC ENTRY: WINDSOR INC ENTRY: I answered this myself but got it…
On August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred to below as “Asset A,” and Windsor’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $ 134,400 $ 154,000 Accumulated depreciation (to date of exchange) 56,000 65,800 Fair value at date of exchange 84,000 105,000 Cash paid by Bonita, Inc. 21,000 Cash received by Windsor, Inc. 21,000 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Bonita, Inc. and Windsor, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. 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.) BONITA INC ENTRY: WINDSOR INC ENTRY: I answered this myself but got it…
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to below as "Asset A," and Wiggins' is referred to as "Asset B." The following facts pertain to these assets.Asset AOriginal Cost $96,000Accumulated Depreciation (to date of exchange) $40,000Fair Value at date of exchange $60,000Cash paid by Hyde, Inc $15,000Asset BOriginal Cost $110,000Accumulated Depreciation (to date of exchange) $47,000Fair Value at date of exchange $75,000Cash paid by Hyde, Inc $15,000Instructions:(a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.(b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
Clark Co. and Keys Inc. exchange equipment. Information related to this exchange follows. Equipment given up: Clark Co. Keys Inc. Accumulated depreciation Equipment (original cost) $54,000 $63,000 18,000 21,600 32,400 43,200 (10,800) 10,800 Fair value Cash exchanged Required a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. c. Record the exchange for Clark Co. assuming the transaction lacks commercial substance. d. Record the exchange for Keys Inc. assuming the transaction lacks commercial substance. Exchange has Commercial Substance Exchange Lacks Commercial Substance a. Record the exchange for Clark Co. assuming the transaction has commercial substance. b. Record the exchange for Keys Inc. assuming the transaction has commercial substance. a. Account Name Dr. Cr.
Bloomington Inc. exchanged land for equipment and $2,600 in cash. The book value and the fair value of the land were $105,500 and $89,100, respectively.Assuming that the exchange has commercial substance, Bloomington would record equipment and a gain/(loss)on exchange of assets in the amounts of: Equipment Gain/(loss) a. $ 86,500 $ 2,600 b. $ 105,500 $ (2,600 ) c. $ 86,500 $ (16,400 ) d. None of these answer choices are correct. Option C Option D Option A Option B
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to below as “Asset A,” and Wiggins’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A 0Asset B0 Original cost $96,000 $110,000 Accumulated depreciation (to date of exchange) 40,000 47,000 Fair value at date of exchange 60,000 75,000 Cash paid by Hyde, Inc. 15,000 Cash received by Wiggins, Inc. 15,000 Instructions a. Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles. b. Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.
When nonmonetary assets are exchanged, a company records the cost of the nonmonetary asset acquired at: a.The fair value of the nonmonetary asset surrendered minus cash paid. b.The book value of the asset received minus cash paid. c.The fair value of the nonmonetary asset surrendered plus cash paid. d.The fair value of the nonmonetary asset surrendered plus cash received.
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
On August 1, Hani, Co. exchanged machinery with Wahran Co. Hani's asset is referred to below as Asset A, and Wahran's is referred to as Asset B. The following facts pertain to these assets. Asset A (Hani) E96,000 Asset B (Wahran) £110,000 47,000 75,000 Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Hani Co. Cash received by Wahran Co. Required: (a) Assuming that the exchange of Assets A and B has commercial substance, record the exchange for 40,000 60,000 15,000 15,000 both Hani Co. and Wahran Co. (b) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for Both Hyde, Inc. and Wiggins, Inc.