Waterway Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Waterway Co. $42,000 28,500 18,750 4,500 Wildhorse Co. $42,000 15,000 23,250 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 Waterway Company: Debit Credit

Waterway Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Waterway Co. $42,000 28,500 18,750 4,500 Wildhorse Co. $42,000 15,000 23,250 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 Waterway Company: Debit Credit

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 6SEB: DIRECT WRITE-OFF METHOD Brent Mussellman, owner of Brents Barbells, uses the direct write-off method...

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Which of the following transactions will require a journal entry? Indicate if it will be a debit or a credit and to what account the entry will be recorded. Select "NA" if not applicable. Transaction No JournalEntryNeeded JournalEntryNeeded Debit Credit Outstanding check Interest income NFS check Wire transfer by customer Deposit in transit Bank charges
Sunland Inc. mistakenly recorded a cheque as $653 that was written for $761 in payment of a payable owing to one of the company’s suppliers. In addition, the company noticed that the bank had mistakenly deducted a cheque for $476 from its bank account that was written by another company.(b)Identify any entries required on Sunland’s books to correct these errors. (List all debit entries before credit entries. 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 0 for the amounts.)
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In maintaining the accounts receivable, the method that applies a customer’s payment to the account balance without consideration of which unpaid invoices the customer is paying is: TurnaroundOpen-invoice Balance-forwardCycle billingMatching
At the time of the event, which of the following does not result in a journal entry and an update of information in the general ledger? A. Shipping and billing the customer B. Receiving cash from the customer C. Approving payment for the vendor D. Processing of a sales order E. Making a payment to the vendor
how to correct a credit invoice (issued by the business) has not been recorded at all?
A trial balance will disclose that an error has been made in Entering an amount on the wrong side of account Computing the interest expense on note payable Posting an amount to the wrong ledger account Double-posting two both sides of entry