On September 12, Pina Company agreed to an exchange of assets with another company. Pina gave up a machine with an original cost of $50,800. $30,200 in accumulated depreciation had been recorded on this machine over the course of Pina's ownership. Pina determined that the machine being given up had a fair value of $18,000. Pina also paid $7,000 in cash. Assume that Pina follows IFRS and that the transaction has commercial substance. Prepare the journal entry to record the asset exchange on Pina's books. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Sept. 12 Debit TI Credit |||||

On September 12, Pina Company agreed to an exchange of assets with another company. Pina gave up a machine with an original cost of $50,800. $30,200 in accumulated depreciation had been recorded on this machine over the course of Pina's ownership. Pina determined that the machine being given up had a fair value of $18,000. Pina also paid $7,000 in cash. Assume that Pina follows IFRS and that the transaction has commercial substance. Prepare the journal entry to record the asset exchange on Pina's books. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Sept. 12 Debit TI Credit |||||

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...

See similar textbooks

Similar questions

On September 12, Pina Company agreed to an exchange of assets with another company. Pina gave up a machine with an original cost of $50,800. $30,200 in accumulated depreciation had been recorded on this machine over the course of Pina's ownership. Pina determined that the machine being given up had a fair value of $18,000. Pina also paid $7,000 in cash. Assume that Pina follows IFRS and that the transaction has commercial substance. Prepare the journal entry to record the asset exchange on Pina's books. (Credit account titles are automatically indented when the amount
On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company. ATG gave up a machine with an original cost of $50,000. $30,000 in accumulated depreciation had been recorded on this machine over the course of ATG’s ownership. ATG determined that the machine being given up had a fair value of $18,000. ATG also paid $7,000 in cash. Assume that ATG follows IFRS and that the transaction has commercial substance.You have recently been hired in the accounting department of ATG and are preparing the entries to record the exchange of assets. What is the net carrying value of the machine on September 30, 2020 immediately prior to the exchange on ATG’s books? What is the total cost to ATG of the…
On September 30, 2020 AssetsToGo Company (ATG) agreed to an exchange of assets with another company. ATG gave up a machine with an original cost of $50,000. $30,000 in accumulated depreciation had been recorded on this machine over the course of ATG’s ownership. ATG determined that the machine being given up had a fair value of $18,000. ATG also paid $7,000 in cash. Assume that ATG follows IFRS and that the transaction has commercial substance.You have recently been hired in the accounting department of ATG and are preparing the entries to record the exchange of assets. What is the net carrying value of the machine on September 30, 2020 immediately prior to the exchange on ATG’s books? What is the total cost to ATG of the…
During the current year, Blake Construction disposed of plant assets in the following transactions:Jan. 6 Equipment costing $18,000 was given to a scrap dealer at no charge. At the date ofdisposal, accumulated depreciation on the office equipment amounted to $16,800.Mar. 3 Blake sold land and a building for $800,000, receiving $100,000 cash and a five-year,12 percent note receivable for the remaining balance. Blake’s records showed thefollowing amounts: Land, $50,000; Buildings, $680,000; Accumulated Depreciation:Building (at the date of disposal), $250,000.Jul. 10 Blake traded in an old truck for a new one. The old truck had cost $26,000, and itsaccumulated depreciation amounted to $22,000. The list price of the new truck was$37,000, but Blake received a $12,000 trade-in allowance for the old truck and paidonly $25,000 in cash. Blake includes trucks in its Vehicles account.Sept. 3 Blake traded in its old computer system as part of the purchase of a new system. Theold system had cost…
Arca Salvage purchased equipment for $10,000. Arca recorded total depreciation of $8,000 on the equipment. Assume that Arca exchanged the old equipment for new equipment, paying $4,000 cash. The fair market value of the new equipment is $5,000. Journalize Arca's exchange of equipment. Assume this exchange has commercial substance. Let's begin by calculating the gain or loss on the exchange of equipment. (Enter a loss with a minus sign or parentheses.) Market value of assets received Less: Book value of asset exchanged Cash paid Gain or (Loss)
Caleb Company owns a machine that had cost $46,000 with accumulated depreciation of $20,200. Caleb exchanges the machine for a newer model that has a market value of $56,000. Record the exchange assuming Caleb paid $31,800 cash and the exchange has commercial substance. Record the exchange assuming Caleb paid $23,800 cash and the exchange has commercial substance.
During the current year, Hitchcock Developers disposed of plant assets in the following transactions. Feb. 10 office equipment costing $24,000 was given to a scrap dealer at no charge. At the date of disposal, accumulated depreciation on the office equipment amounted to $21,800. Apr. 1 Hitchcock sold land and building to Claypool Associates for $900,000, receiving $100,000 cash and 5 years, 9 percent note receivables for the remaining balance. Hitchcock’s records showed the following amount: Land, $50,000; building, $550,000; accumulated depreciation: building (at the date of disposal), $250,000 Aug. 15 Hitchcock traded in an old truck for a new one. The old truck had cost $26,000, and its accumulated depreciation amounted to $18,000. The list price the new truck was $39,000, but Hitchcock received a $10,000 trade in allowance for the old truck and paid $28,000 in cash. Hitchcock includes trucks in its Vehicles account. Oct. 1 Hitchcock traded in its old computer system as part of the…
HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost , $550,000) for a molding machine owned by Water Company. The molding machine is carried in Water's Company books at a cost of $240,000 with an accumulated depreciation of $83,000 at the time of exchange. Assume that the fair values of the automobile and the molding machine are $145,000 and $150,000, respectively. In addition, HOT Company paid $5,000 to Water Company to complete the transaction. How much is the gain or loss on the exchange to be recognized by Water Company?
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.
During the current year, Ramirez Developers disposed of plant assets in the following transactions:Feb. 10 Office equipment costing $26,000 was given to a scrap dealer at no charge. At the dateof disposal, accumulated depreciation on the office equipment amounted to $25,800.Apr. 1 Ramirez sold land and a building to Claypool Associates for $900,000, receiving$100,000 cash and a five-year, 9 percent note receivable for the remaining balance.Ramirez’s records showed the following amounts: Land, $50,000; Building, $550,000;Accumulated Depreciation: Building (at the date of disposal), $250,000.Aug. 15 Ramirez traded in an old truck for a new one. The old truck had cost $26,000, and itsaccumulated depreciation amounted to $18,000. The list price of the new truck was$39,000, but Ramirez received a $10,000 trade-in allowance for the old truck and paidonly $29,000 in cash. Ramirez includes trucks in its Vehicles account.Oct. 1 Ramirez traded in its old computer system as part of the purchase…
Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and accumulated depreciation of $60,000. The new truck had an invoice price of $311,000. Huffington was given a $237,000 trade-in allowance on the old truck, which meant they paid $74,000 in addition to the old truck to acquire the new truck. If this transaction has commercial substance, what is the recorded value of the new truck? Multiple Choice $240,000 $300,000 $74,000 $311,000 $314,000
Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: