Kerry, Inc., exchanged land and cash of $7,700 for equipment. The land had a book value of $52,000 and a fair value of $56,.700. Required: Prepare the journal entry to record the exchange. Assume the exchange has commercial substance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the exchange of assets. Hote: Enter debits befera ciedis. Transaction General Journal Debit Credi
Q: ullumber Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for…
A: Calculation of Gain or Loss: Cullumber Co. Riverbed Co. Fair Value of Old Equipment $18,000…
Q: wo independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol…
A: The exchange of assets is calculated on the basis of book value and the fair value of new assets. If…
Q: Below is the information relative to an exchange of assets by Bramble Corporation. The exchange…
A: Exchange of assets: Sometimes the companies exchange their old asset for new assets. This is done…
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: The Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a…
A: Solution:- 1)Calculation of fair value if the equipment as follows under:-
Q: Hartney Company and Indoy Company had an exchange of productive assets. Hartney Company exchanges a…
A: Gain or loss on Exchange:-When a company exchanges assets for another asset from another company, if…
Q: On the first day of the fiscal year, a new walk-in cooler with a list price of $51,300 was acquired…
A: When new assets has been purchased and old assets has been given in exchange , then we need to find…
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: Karlene Company and Erika Company are fuel oil disti ers. To facilitate the delivery of oil to…
A: Concept of Valuation of Inventory
Q: Below is the information relative to an exchange of old equipment for new equipment by Ehrlich…
A: As per provisons of IFRS, where the exchange of assets takes place then the new asset shall be…
Q: Kerry, Inc., exchanged land and cash of $7,600 for equipment. The land had a book value of $51,000…
A: If an asset is acquired in exchange for a non monetary asset or in combination of monetary and non…
Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to…
A: GAAP: Generally Accepted Accounting Principles.
Q: The following information relates to an exchange of assets by Wharton Company. The exchange lacks…
A: Lack of Commercial substance on exchange of Assets If no commercial substance exists on exchange of…
Q: he Bronco Corporation exchanged land for equipment. The land had a book value of $122,000 and a fair…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000 and a…
A: GIVEN The Bronco Corporation exchanged land for equipment. The land had a book value of $129,000…
Q: Joshua Company and Kryzel Company are fuel oil distribution. To facilitate the delivery of oil to…
A: Here discuss about the details of the exchange of inventory without transfer the physical presence…
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: When exchange lack commercial substance exist, the exchange of assets would be recorded at cost of…
Q: | Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.…
A: When the commercial substance exists, the asset acquired must be recognized at Fair value, & If…
Q: Peanut Corporation exchanged land and cash of $6,500 for equipment. The land had a book value of…
A: Introduction:- The following basic information as follows under:- If fair value more than Carrying…
Q: Riverbed Corporation exchanged equipment used in its manufacturing operations for equipment used in…
A:
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: As per IAS 16, Property, plant and Equipment If asset is purchased for value which includes payment…
Q: On March 1Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…
A: The asset acquired by the company is recorded at fair value of the asset in the books of the…
Q: Salad Express exchanged land it had been holding for future plant expansion for a more suitable…
A: Fair value of the new Land = Fair value of the old Land + Cash paid = $146,000 + 22,500 = $168,500
Q: Cheyenne Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for…
A: The verification of the percentage of the cash received whether it exceeds 25% of the fair value of…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a…
A: 1.Determine the fair value of the equipment.
Q: Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Brooks LLC exchanged machinery with an appraised value of $4,600,000, a recorded cost of $7,200,000…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: China Inn and Midwest Chicken exchanged assets. Midwest Chicken received equipment and gave a…
A:
Q: Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash.…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Navajo Corporation traded a used truck (cost $20,000, accumulated depreciation $18,000) for a small…
A: $ Cost of the truck 20000 Less: Accumulated depreciation 18000 Book Value 2000…
Q: Company Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000 a…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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: hite purchased land with a current market value of $144,000, a building with a market value of…
A: Total market value of land, building nd equipment = $144, 000 + 18000 + 18000 =$180, 000
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $130,000 and a…
A: Fair value of equipment = Fair value of land + Cash given Gain on exchange = Cost of equipment - (…
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: If exchange of assets lacks commercial substance , i.e. fair values are not reliable then Property…
Q: Aye Company owns an equipment with carrying amount of P2,000,000 and fair value of P2,500,000on the…
A: The equipment acquired in exchange is recorded at fair value of that particular asset.
Q: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…
A: China Inn and Midwest Chicken exchanged assets. China Inn received a delivery truck and gave…
Q: Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for…
A: Journal means the book of prime entry where all entries are recorded in different pages.
Q: yvey Co. Equipment (cost) Rwf 40,000 Rwf 40,000 Accumulated depreciation…
A: Impairment of Assets is ensuring that Asset is not carried at a amount higher than its recoverable…
Q: Caine Company exchanged a car from inventory for a computer to be used as a long-term asset. The…
A: Journal entries (JF) refers to the very basic step in the accounting cycle and records the daily…
Q: The Bronco Corporation exchanged land for equipment. The land had a book value of $120,000 and a…
A: Fair value of equipment Land book value. $ 150000 Cash received. $ 10000…
Q: Stewart Company exchanges an asset with Leonard Corporation. Details of the exchange are as follows:…
A: As per the accounting standard, when a Property, Plant & Equipment is exchanged for a…
Q: Flint Company exchanged equipment used in its manufacturing operations plus $3,360 in cash for…
A:
Q: Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc.…
A: (a.) Description Debit Credit Equipment (new) A/c $19,000 Accumulated…
Q: Crane Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for…
A: (1) Prepare journal entries for Crane Co. and Cheyenne Co. to record exchange, if exchange lacks…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- SA Electrical received a debit card payment of R2 300,00 from A Zulu in full settlement of his account. Receipt no. 1024 was issued. The supporting document that SA Electrical will use to record the transaction in the correct subsidiary journal will be: Select one: O a. duplicate receipt O b. duplicate deposit slip O c. original receipt O d. duplicate invoiceInstruction: Provide the journal entry to record the transactions or events below. If no journal entry is needed, state the registry or other documents where the transaction or event is recorded. 1. Receipt of notice of appropriation amounting to P400M. 2. Receipt of allotment from the DBM amounting to P380M. 3. Incurrence of obligation amounting to P350M. 4. Receipt of Notice of Cash Allocation amounting to P325M. 5. Accrual of P300M salaries upon approval of payroll. The breakdown is as follows: Salaries and Wages 280M Personal Economic Relief Allowance (PERA) 20M Gross Withholding Compensation Tax 300M (75M) GSIS Withholding (15M) Pag-IBIG (15M) PhilHealth (8M) Total Deductions (113M) Net 187M 6. Granting of cash advance for the payroll. 7. Liquidation of the cash advance for payroll. 8. Remittance of taxes withheld to the BIR. 9. Remittance of other amounts withheld to the other government agencies concerned.Using the following cash payments journal, identify each of the posting references, indicated by a letter, as representing (1) a posting to a general ledger account, (2) a posting to a subsidiary ledger account, or (3) that No posting is required. CASH PAYMENTS JOURNAL Page 46 Date Ck.No. Account Debited Post.Ref. OtherAccountsDr. AccountsPayableDr. Cash Cr. 20Y1 July 3 611 Energy Systems Co. (a) 4,000 4,000 July 5 612 Utilities Expense (b) 310 310 July 10 613 Prepaid Rent (c) 3,200 3,200 July 16 614 Flowers to Go, Inc. (d) 1,250 1,250 July 19 615 Advertising Expense (e) 640 640 July 22 616 Office Equipment (f) 3,600 3,600 July 25 617 Echo Co. (g) 5,500 5,500 July 26 618 Office Supplies (h) 250 250 July 31 619 Salaries Expense (i) 1,750 1,750 July 31 9,750 10,750 20,500 (j) (k) (l) Post reference represents: a. b. c. d. e. f. g.…
- Sheffield Inc factors receivables with a carrying amount of $233,500 to Joffrey Company for $178,600 on a with recourse basis. The recourse provision has a fair value of $2.870. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Sheffield Inc. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries Account Titles and Explanation Debit CreditSarasota Inc. factors receivables with a carrying amount of $225,400 to Joffrey Company for $173,400 on a with recourse basis.The recourse provision has a fair value of $3,330. This transaction should be recorded as a sale.Prepare the appropriate journal entry to record this transaction on the books of Sarasota Inc. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)Windsor Inc. factors receivables with a carrying amount of $228,700 to Joffrey Company for $175,300 on a with recourse basis. The recourse provision has a fair value of $2,290. This transaction should be recorded as a sale. Prepare the appropriate journal entry to record this transaction on the books of Windsor Inc. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Debit Credit
- issued cheque no 4026 for 5400 to this supplier for the invoice at the time of purchasePearl Inc. factors receivables with a carrying amount of $242,700 to Joffrey Company for $178,900 on a with recourse basis.The recourse provision has a fair value of $3,390. This transaction should be recorded as a sale.Prepare the appropriate journal entry to record this transaction on the books of Pearl Inc. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Click if you would like to Show Work for this question: Open Show WorkAsset Cost: Less: Residual Value Depreciable Amount Depreciation method Depreciation p.a: Date 30/06/2018 30/06/2019 30/06/2020 Computers Depreciation Worksheet - Snow Lake Pty Ltd $66,000 $ N/A $66,000 Reducing Balance (Diminishing Balance) 30% Asset Cost $66,000 46,200 32,340 Depreciation $19,800 13,860 9,702 Accumulated Depreciation $19,800 33,660 43,362 Carrying Amount at the end $46,200 32,340 22,638 20 2014 2015 14200 1444
- As the new staff person in your company’s treasury department, you have been asked to conduct research related to a proposed transfer of receivables. Your supervisor wants the authoritative sources for the following items that are discussed in the receivables transfer agreement. Instructions Access the IFRS authoritative literature at the IASB website. (Click on the IFRS tab and then register for free eIFRS access if necessary.) When you have accessed the documents, you can use the search tool in your Internet browser to prepare responses to the following items. (a) Identify relevant IFRSs that address transfers (derecognition) of receivables. (b) What are the criteria for a transfer of a financial asset to qualify for derecognition? (c) Provide the definition for “Amortized cost.”Nestlé, a Switzerland-based company, uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal in a manner similar to that explained in this chapter. Journalize the following Nestlé transactions that should be recorded in the general journal. For those not recorded in the general journal, identify only the special journal where each should be recorded. (All amounts in millions of Swiss franc, CHF.) 1. Assume Nestlé purchased CHF 17,000 of merchandise on credit from suppliers. 2. Assume Nestlé sold CHF 94,000 of merchandise (cost is CHF 42,300) on credit to customers. 3. Assume a key customer returned CHF 2,400 of (worthless) merchandise to Nestlé (assume the cost of this merchandise is left in cost of goods sold).Accounting Your client presents you with a bill of lading and commercial invoice for a consignment of goods valued at AUD 50,000.00. Describe what type of entry is required to clear this consignment through Customs.