Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
2nd Edition
ISBN: 9780134833118
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 11, Problem 11.30E
To determine
To prepare:
Given Information:
Cash paid in exchange of chocolate mixing machine is $31,500.
Fair value of chocolate mixing machine exchanged is $562,500.
Book value of machine is $500,000.
Historical cost of the machine is $1,135,000.
Fair value of new mixing machine is $594,000.
Book value of new machine is $380,000
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(Transfer of Receivables with Recourse) Ames Quartet Inc. factors receivables with a carrying amount of $200,000 to Joffrey Company for $160,000 on a with recourse basis.InstructionsThe recourse provision has a fair value of $1,000. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Ames Quartet Inc.
Pearl’s Delivery Company and Martinez’s Express Delivery exchanged delivery trucks on January 1, 2020. Pearl’s truck cost €22,500. It has accumulated depreciation of €15,500 and a fair value of €3,300. Martinez’s truck cost €8,500. It has accumulated depreciation of €6,800 and a fair value of €3,300. The transaction has commercial substance.
Journalize the exchange for Pearl’s Delivery Company
Account Titles and Explanation
Debit
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Equipment
Accumulated Depreciation-Equipment
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please make sure the answer is correct 100%
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.
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Asset B
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$117,120
$134,200
Accumulated depreciation (to date of exchange)
48,800
57,340
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73,200
91,500
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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
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Cheyenne, Inc.’s Books
Chapter 11 Solutions
Intermediate Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (2nd Edition)
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