Bramble Corporation traded a used truck for a new truck. The used truck cost $25,400 and has accumulated depreciation of $21,590 The new truck is worth $44,450. Bramble also made a cash payment of $41,910. Prepare Bramble's entry to record the exchange. (The exchange has 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. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
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- Crane Corporation owns a patent that has a carrying amount of $612,000. Crane expects future net cash flows from this patent to total $382.500. The fair value of the patent is $474,300. Prepare the journal entry, if necessary, to record the loss on impairment. (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. Ust debit entry before credit entry) Account Titles and Explanation Debit CreditMetro Inc. trades its used machine for a new model at Denver Co. The used machine has a book value of $42,000 (cost $64,000) and a fair value of $50,000. Metro receives $5,000 cash from Denver. A) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has no commercial substance. B) Prepare the necessary journal entry by Metro to record this exchange. Assume the exchange has commercial substance.On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost and related accumulated depreciation at this date are as follows. Machine $1,950,000 Less: Accumulated depreciation 540,000 Book value $1,410,000 Depreciation is computed at $90,000 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal. (a) Your answer is correct. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $645,000 was received for this casualty. Assume the settlement was received immediately. (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.) Date Account Titles and…
- On January 2, 2009Dennisson Inc. purchased a piece of machinery and signed a noninterest bearing note in its payment. The Note requires the Company to pay $100,000 on December 31,2011. Dennisson is not sure what interest rate appropriately reflects the time value of money. However, the price lists indicate the machine could have been purchased for a price of $79,383. Required: a. Show how Dennisson should record his transaction in its General Journal on January 2, 2009 recognizing the Discount on Notes Payable. b. What is the effective interest rate implicit in the transaction/ Show computation.1. Our Company trades in old equipment that cost $81,000, has a book value of $53,000 and a fair value of $45,000. The new equipment has a list price of $94,000. We receive a trade in allowance for the old equipment of $50,000. This transaction has commercial substance. Prepare the journal entry to record this exchange. Answer: Debits CreditsBlossom Inc. enters into an agreement on March 1, 2025, to sell Bridgeport Metal Company aluminum ingots. As part of the agreement, Blossom also agrees to repurchase the ingots on May 1, 2025, at the original sales price of $250,000 plus 3%. t (a) Prepare Blossom's journal entry necessary on March 1, 2025. (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 debit entry before credit entry.) Date March 1, 2025 Account Titles and Explanation > Debit Credit
- Flint Corp. has the following securities (all purchased in 2023) in its investment portfolio on December 31, 2023: 2,570 Anderson Corp.common shares, which cost $49,344; 10,700 Munter Ltd. common shares, which cost $580,700; and 6,700 King Corp. preferred shares, which cost $256,400. Their fair values at the end of 2023 were as follows: Anderson $50,980; Munter $570,200; and King $256,500. In 2024, Flint completed the following transactions: On January 15, sold 2,570 Anderson common shares at $21 per share less fees of $2,290. 2. On April 17, purchased 1,350 Castle Ltd. common shares at $34.20 per share plus fees of $2,120. 1. The company adds transaction costs to the cost of acquired investments and deducts them from cash received on the sale of investments. On December 31, 2024, the fair values per share of the securities were as follows: Munter $68; King $26; and Castle $22. Flint's accounting supervisor tells you that all these securities have fair values that can be readily…On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $46,000 on March 31, 2025. The fair value of the merchandise exchanged is $41,860. Esquire views the financing component of this contract as significant. Required: Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2024 interest accrual, and the March 31, 2025 collection. What is the effective interest rate on the note? Record the sale of merchandise. Record the interest accrual on December 31. Record the interest accrual on March 31. Record the cash collection.Sheffield Corporation owns a patent that has a carrying amount of $640,000. Sheffield expects future net cash flows from this patent to total $640,000. The fair value of the patent is $394,000. Prepare Sheffield's journal entry to record the loss on impairment. (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.) Account Titles and Explanation Debit Credit
- Marin Corporation purchased a truck by issuing an $113,600, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 9%. Prepare the journal entry to record the purchase of this truck. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final 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.) Account Titles and Explanation Debit CreditOn January 1, 2024, Byner Company purchased a used tractor. Byner paid $2,000 down and signed a noninterest-bearing note requiring $29,000 to be paid on December 31, 2026. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Prepare the journal entry to record the acquisition of the tractor. 2. How much interest expense will the company include in its 2024 and 2025 income statements for this note? 3. What is the amount of the liability the company will report in its 2024 and 2025 balance sheets for this note? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 No 1 Answer is complete but not entirely correct. Prepare the journal entry to record the acquisition of the tractor.…Bonnie Corp. sells a machine to a customer for $18,000 and uses the Installment Sales Method to account for the sale. The cost of the goods was $12,400. At the date of sale, Bonnie delivers the machine and receives $4,500, with the remainder being an installment account receivable for $13,500. How much gross profit should Bonnie recognize at the date of delivery? Do not use commas, dollar symbols (e.g. $), units or spaces in your answers. For example, one thousand five hundred and twenty-three dollars should be entered as 1523. If the Canvas system inserts a comma for you, don't worry about it.