Prepare journal entries for Goodman and Harmes to record the exchange.

Q: Caleb Co. owns a machine that had cost $42,400 with accumulated depreciation of $18,400. Caleb…

A: Journal entry: It refers to the recording of the transaction and event takes place in the business…

Q: Tainan company decides to exchange its old machine and $2,600,000 cash for a new machine. The old…

A: If the transaction has commercial substance, new asset will be recorded at its fair value and any…

Q: Hot Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: As per IAS 16 PPE When PPE are acquired for exchange of another ppe, the same should be valued at…

Q: Gilly Construction trades in an old tractor for a new tractor, receiving a $29,000 trade-in…

A:

Q: COPS Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: On August 1, Gold Company exchanged a machine for a similar machine owned by Cowboy Company and also…

A: a. Date Account Titles Debit Credit   Machine (new) $53,000     Accumulated depreciation…

Q: Jamela Company acquired a welding machine with an invoice price of P5,000,000 subject to a cash…

A: As per IAS 16 , Property plant and equipment,  Cost of property plant and equipment consists of…

Q: Slaton Corporation traded a used truck for a new truck. The used truck cost $20,000 and has…

A: For sale of used Truck Particulars Debit ($) Credit ($) Bank A/c 3,000   Accumulated…

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: 1.

Q: What is Sebastian's basis in these two assets? If required, round your interim calculations to two…

A: Lump-sum purchase:   When the assets are purchased or bought in a lot in one transaction at a lump…

Q: Abby Corporation acquired a new processing machine. Details of the acquisition are as follows:…

A: Capitaliztion is defined as the procedure of converting the stream of income to the capital value of…

Q: Jamal purchased equipment and used materials to develop a patent. The development costs were…

A: Jamal plans to sell his equipment to s. the basis and FMV of the equipment is given.it is required…

Q: During the current year, Erving Company exchange an old packing machine     which cost 1 200 00 and…

A: Fixed assets are those assets which a company held for a longer period of time, i.e., for period…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On March 1, 2022, True Company exchanged an old machine which cost P 1,200,000 and was 50%…

A: Journal entry is the primary step to record the transaction in the books of account.  Depreciation…

Q: Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Ashbrook Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $8,000…

A: a. Date Account Titles and Explanations Debit Credit   Equipment - New $56,900…

Q: TTG Landscaping purchased a dump truck for $150,000. In addition, they spent $12,000 in sales tax,…

A: Journal entry is recorded by the business to record event and transaction occurred during particular…

Q: Grouper Inc. has negotiated the purchase of a new piece of automatic equipment at a price of $10,080…

A: FOB stands for Free on Board. It is the term used during shipment to show whether the seller or…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $77,000 and…

A: Note: When there is commercial substance exist in the exchange of assets transaction, then new…

Q: Garcia Co. owns equipment that costs $76,800, with accumulated depreciation of $40,800. Garcia sells…

A: Gain (Loss) on Sale of Equipment = Sale Consideration - (Cost - Accumulated Depreciation)

Q: Mathison Company exchanged a worn-out tractor that had cost $30,000 and was half depreciated for a…

A: Asset is the value of the items owned the firm. It can be tangible or intangible in nature. It can…

Q: Laramie Company has acquired a property that included both land and a building for $600,000. The…

A: Given: Cost of land and building = $600,000 Market value of land = $370,000 Market value of building…

Q: For what amount will LAR record the range?

A: Recording the purchase of an asset is an important ledger entry as it show cases in the balance…

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $600,000.…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: Goodman Company acquired a truck from Harmes Company in exchange for a machine. The exchange is…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: Twilight Corporation is a construction company that owns a truck used to transport construction…

A: A transaction is assumed to have a commercial substance when the future cash flows will be affected…

Q: The Tinsley Company exchanged land that it had been holding for future plant expansion for a more…

A: Since multiple subparts are posted, only the first three will be answered.

Q: Donner Company is selling a piece of land adjacent to its business premises.  An appraisal reported…

A: Historical cost principle: According to the principle of historical cost, the cost incurred to…

Q: During the current year, Marshall Construction trades an old crane that has an original cost…

A: a) i) ii) Marshall Construction should record the same entry as in part (a) above.

Q: Abby Corporation acquired a new processing machine. Details of the acquisition are as follows:…

A: Abby corporation's Acquired new processing machine = P300000 1. Invoice cost = P300000 Discount on…

Q: Company A had a machine with a carrying amount of 450,000. Company B had a delivery vehicle with a…

A: If exchange have commercial substance, the sales value of assets  & Purchase value of assets…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: Assets means the resources which is owned by business. Liability means the amount which is to be…

Q: Rain Company traded a manual weather machine for an automated weather machine and gave $40,000 cash.…

A: Rain Company Shine Company  Cost $495,000 $510,000 Accumulated Depreciation (Bal. Fig.)…

Q: Jamela Company acquired a welding machine on account with an invoice price of P5,000,000 subject to…

A: Cost of asset includes the invoice price less any cash discount and all other costs which are…

Q: Cliff Company traded in an old truck for a new one. The old truck had a cost of $300,000 and…

A: Recorded value of new Truck = Fair value of the new Truck received  where, Fair value of the new…

Q: Hunter Sailing Company exchanged an old sailboat for a new one. The old sailboat had a cost of…

A: Solution: Book value of old sailboat = Cost - Accumulated depreciation = $210,000 - $105,000 =…

Q: erry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the…

A: Assets means the resources which is owned by business and used in business for earning profits.…

Q: Beaverton Lumber purchased a milling machine for $35,000. In addition to the purchase price,…

A: Plant Assets:  Plant assets refer to the fixed assets, having a useful life of more than a year that…

Q: In December 2005, SHOWEE Company exchanged an old machine, with a cost P6,000,000 and 50%…

A: Here discuss about the details of exchange of machinery which can be incurred the exchange price…

Q: ala Manufacturing purchases land for $451,000 as part of its plans to build a new plant. The company…

A: General journal Debit Credit Land A/c  Dr($451,000 +$26,600 +$39,322 ) $516922   Land…

Q: HOT Company exchanges an automobile machine with a carrying amount of $135,000 ( original cost ,…

A: When fixed assets is exchange , then fair value of assets exchange should be determined and compared…

Q: Amble, Inc. exchanged a truck with a carrying amount of ₱12,000 and a fair value of ₱20,000 for a…

A: the correct option with proper explanation are as follows.

Q: Red Rock Bakery purchases land, building, and equipment for a single purchase price of $300,000.…

A: Red Rock Bakery purchased land, building & equipment all for $300,000 and the fair values of…

Q: Abby Corporation acquired a new processing machine. Details of the acquisition are as follows:…

A: A fixed asset is the asset which is held for use in the operations or for other administrative uses.…

Q: Ebasan Compary acquired a new machine with an invoice cost of P1,600,000, Ebasan incurred…

A: Cash allowance to Chief engineer shall not be adjusted in the cost of machine. Gratuity to the…

Q: Sebastian purchases two pieces of equipment for $113,000. Appraisals of the equipment indicate that…

A: Combined Cost Price = $113,000 This cost price will be allocated to individual equipment in the…

Q: Cala Manufacturing purchases land for $381,000 as part of its plans to build a new plant. The…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…