Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: SmileFrown Equipment 2, 400, 000 2, 200, 000 Accumulated Depreciation 2, 000, 000 1, 750, 000 Fair value of equipment 500, 000 500, 000 Required: Journal entries on the books of smile and frown what is the rule in solving the problem?
Q: Vanquish, Incorporated, a C Corporation, had the following items of income and expense during 2021.
A: C Corp is a corporation in which shareholders are taxed seperately from t...
Q: Flounder Corporation reports operating expenses of $90,100 excluding depreciation expense of $15,400...
A: Operating Expenses: Operating expenditures in company are expenses that are incurred on a day-to-day...
Q: dividends amounting to P960,000 during 2022. How much did Promenade pay for its investment in Twilig...
A: Investment refers to those mechanism which is used by the company for the purpose of generating inco...
Q: A company has estimated its economic order quantity for Part A at 3,000 units for the coming year. I...
A: Economic order quantity = 2 * Annual usage * cost per order / Carrying cost per unit
Q: At that date, the carrying amount of the land was P5,000,000 and the balance in the revaluation surp...
A: Impairment loss is the difference in the recoverable amount and carrying of the asset. Recoverable a...
Q: On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of...
A: Bad debts expense = Estimated uncollectible accounts - Beginning Credit balance of Allowance for dou...
Q: Garden Co has determined that its soil and peat moss CGU is impaired by $360,000 due to erosion. Seg...
A: Impairment loss is the decrease in the recoverable amount from carrying amount. If the recoverable a...
Q: 3. SAN JOSE is a producer of cooking oil. The company become VAT registered t the start of 2018. Pre...
A: Presumptive Input tax: Individuals or organizations who are engaged in the processing of sardines, m...
Q: As the new accountant of Villain Corn, you were assigned to prepare the bank reconciliation statemen...
A: Working Details Available Cash on book records before reconciliation was P 900000 Cash per bank stat...
Q: For 2020, Ross Corporation had pretax ordinary income of $500,000 and sold for $150,000 an asset pur...
A: Tax Rate for Companies in US for FY 2020 is Flat 21 % Therefore Tax on ($500,000 +$25,000 ) = $525,0...
Q: Both Bond Sam and Bond Dave have 7.1 percent coupons, make semiannual payments, and are priced at pa...
A: Bond Valuation Bond valuation is important for the business entity which can be generate more liquid...
Q: Slow Running Shoes uses the Aging of receivables method to account for uncollectible accounts. o The...
A: If you use accounting software or outsource your accounting, your journal entries may not be visible...
Q: Surreal Company accounted for non-current assets using the revaluation model. On October 1, 2021, th...
A: When the selling price is the asset is more than its Carrying amount or fair value , then it leads t...
Q: Hello, Working with amortization of bonds as well as amortization of leases. Need assistance with ex...
A: Amortization of Bond The purpose of preparing the Amortization table which know the fact of total in...
Q: 2. (a) What would be the assessment procedure in case of discontinued business? (b) For accelerating...
A: Here discuss about the taxation system which was involved with the Bangladesh and the assessment pro...
Q: Monica, Phoebe, Rachel, Chandler, Joey, and Ross bid on a much coveted resource (Marcel the monkey)....
A: according to the guidelines we are allowed to solve 3 subpart (first 3) subpart in case multiple sub...
Q: a stock for a price of $23 and if you expect the stock to pay a dividend of $1.242 one year from now...
A: Required rate of return the rate of return required investors for the investment made . This requir...
Q: Jones Stoneware has a liability of $75,000 due four years from today. The company is planning to mak...
A: Initial Deposit Amount = Present Value of Future Amount needed - Present Value of Annual Deposits ...
Q: Oat bought 20% of Flax on 1 January 20X1 for £500,000 when Flax had £1,000,000 share capital and £3,...
A: Investment in the joint venture or associate is recorded using the equity method. The equity method ...
Q: bba Company accounted for noncurrent assets using the revakuation model. On June 30,2021, the entity...
A: Solution Concept When the fair value exceeds the carrying amount The asset is revalued and the amoun...
Q: A bond pays a coupon of $39 twice a year. What is the coupon rate? Answer as a percent.
A: Coupon rate = total coupon amount paid in a year/face value of the bond
Q: a. How much expense will Lake Company recognize in 2020 due to the purchased patent? b. How much exp...
A: As per our protocol we provide solution to the first three sub-parts only but as you have asked mult...
Q: A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue so...
A: Annual interest rate is 12% Commercial paper issue amount = P 980000
Q: Sparkling Beverages makes one of its products by way of three separate stages. Details of production...
A: Process accounting means a method where raw material is added in different process and output of one...
Q: Statement 1: Financial assets held for trading shall be measured at fair value through profit or los...
A: Securities can be classified under three categories which are, (1) Held to maturity (2) Trading sec...
Q: At the beginning of 2021, Gala company purchased equity securities to held for trading for P5,000,00...
A: It is pertinent to note that equity securities held for trading are measured at fair value through p...
Q: (LG 7.3) Freeport Brothers have recently purchased a process management system. Cabling installed in...
A: According to the given question: Data Collection nodes : =(4,500×3)+6,000+648+188+5,950+1950+200+150...
Q: Define, in your own words, what auditing is. Mention three (3) positive effects that companies obtai...
A: Accounting is rhe process of recording and classifying accounting information so that useful financi...
Q: Please describe the objectives behind FASB ASC Topic 740, Income Taxes, and the income tax provision...
A:
Q: have a 5-year useful life and a S500 salvage value. What adjusting entry would Sokolov record on Dec...
A: Adjusting Entry: (c) Depreciation expenses 500 Accumulated depreciation 500
Q: On the first day of the current fiscal year, $1,500,000 of 8%, 10-year bonds, with interest payable ...
A: Journal entries are the initial reporting of the transactions in the books of an entity.
Q: Mando, manager of XXX Domestic Corporation, received a stock option from the corporation entitling h...
A: Compensation alludes to the monetary rewards provided to workers in exchange for their services. It ...
Q: Ron's basis in his stock is $4,000. The corporation has E&P of $5,000 and distributes $6,000 to Ron....
A: Companies pay dividend out of its current profits and earning and accumulated (if any). Dividend in...
Q: The chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project...
A: Marginal cost-benefit analysis refers to examination of additional benefits of an activity on its co...
Q: Linda Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of C...
A: Under marginal costing, costs are divided into fixed and variable costs. Fixed cost is an unavoidabl...
Q: Answer should be presented as: DECREASE 123456 or INCREASE 123456 During 2021, the first year of ope...
A: Market value of security 2 as on Dec. 31, 2022 1100000 Less: value at which security 2sold ...
Q: Which of the following statements is true when the straight-line method is used to compute amortizat...
A: Using Straight line method , Amortization Expense = Amortization cost / Asset's estimated useful li...
Q: Elegance Esthetics Wholesalers Corporation sells various esthetics treatment tools, esthetic and spa...
A:
Q: National Co. borrowed P100,000 for six months from the percent. The prime rate was 8.5 percent at th...
A: In this question we have to calculate interest on national co. for the 6 months
Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a peri...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: On January 1, 2021, Charlie purchased supplies for P20,000 and recorded a debit to Supplies and cred...
A: Supplies expense = Beginning Supplies Balance + Purchase of supplies - Ending Supplies Balance
Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company'S ordinary shares: no goodwi...
A: Solution Concept Under the equity method , the value at which is the investment is carried is Cost +...
Q: What is E&P and how is it different than a company's net income?
A: Earnings and profits (E&P) are a company's ability to pay dividends to its shareholders. Many co...
Q: What is the amount paid for VAT in Feb? (VAT payable)
A: VAT or Value Added Tax refers to the tax levied on the value addition in goods or service. When Out...
Q: Question 30, P1-11 (similar to) Part 1 of 4 Hemingway Corporation is considering expanding its opera...
A: Solution Corporate tax is levied on the income earned by the companies ,whether domestic or foreign....
Q: Carla Vista Company is considering three long-term capital investment proposals. Each investment has...
A: The Payback Period seems to be the time it takes to return the cost of an invested capital by the ca...
Q: December Norway Company reported that the year-end is ! receivable of P400,000 from a customer that ...
A:
Q: Your company declared $13,800 cash dividen dividends payable at the beginning of the year and $2,800...
A: Beginning dividends payable = $6,400 Cash dividends declared = $13,800 Ending dividends payable = $2...
Q: a. Bank Ledger for November Bank (Asset) Date Details Folio Amount Date Details Folio AmoUne b. Bank...
A: Bank reconciliation is the statement which is prepared by the company in order to match and know the...
Q: Choose a company that creates a product or offers a service that you are familiar. Using the company...
A: Answer with explanation are s follows.
Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange:
SmileFrown
Equipment 2, 400, 000 2, 200, 000
Fair value of equipment 500, 000 500, 000
Required:
what is the rule in solving the problem?
Step by step
Solved in 2 steps
- Sheffield Corp. traded in a manual pressing machine for an automated pressing machine and gave $46500 cash. The old machine cost $478000 and had a net book value of $343000. The old machine had a fair value of $310000.Which of the following is the correct journal entry to record the exchange assuming commercial substance? Equipment 659500 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Equipment 356500 Equipment 310000 Cash 46500 Equipment 356500 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 478000 Cash 46500 Cash 46500 Equipment 310000 Loss on Disposal 33000 Accumulated Depreciation 135000 Equipment 524500Maxim Company exchanged a used machine with a book value of $26,000 (cost $54,000 less $28,000 accumulated depreciation) and cash of $8,000 for a delivery truck. The machine has a estimated fair market of $36,000. The transaction has commercial substance. Regarding the journal entry to record the exchange, what value will be assigned to the delivery truck? O 36,000 O 44,000 O 54,000 O 34,000 Question 17 The cost of training employees to operate newly acquired machinery are usually capitalized as part of the acquisition value of the asset. O Trueequipment of Frown Company. The following information Smile Company exchanged used equipment for another pertains to the exchange: Smile Frown Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,000 1,750,000 500,000 Required: Prepare journal entry on the books of Smile and Frown.
- Below is the information relative to an exchange of old equipment for new equipment by Ehrlich Company. Old Equipment Book Value Fair Value Cash Paid $450,000 $510,000 $90,000 The old equipment had a cost to Ehrlich of $600,000. Show your calculations of the gain or loss incurred on the exchange. 1. Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange lacks commercial substance. 2 Prepare the journal entry for Ehrlich to record the exchange of the equipment assuming the exchange has commercial substance. 3. Assume instead that the machine was sold for cash on 1/1 for $430,000. Prepare the necessary journal entry.FEEBLE Co. exchanged equipment with WEAK, Inc. Pertinent data are shown below: FEEBLECo. WEAK,Inc. Equipment 4,000,000 8,000,000Accumulated depreciation 800,000 3,200,000Carrying amount 3,200,000 4,800,000Fair value ? 4,400,000Cash paid by FEEBLE to WEAK 600,000 600,000In FEEBLE’s books, what amounts are recognized for the following?Equipment Gain (Loss)a. 5,000,000 1,200,000b. 4,400,000 600,000c. 3,800,000 1,200,000d. 3,400,000 (600,000)Use the following information for the next three questions:Altitude Company purchased a plot of land for ₱2,000,000 as a plant site. There was a small officebuilding on the plot, conservatively appraised at ₱700,000 which the company will continue to use withsome modification and renovation.The renovation had plans drawn for a factory and received bids for its construction. It rejected all bidsand decided to construct the plant itself. Below are listed additional items that management feels shouldbe included in the property, plant and equipment…Required information [The following information applies to the questions displayed below.] Freeman Landscaping purchased a tractor at a cost of $37,000 and sold it three years later for $18,800. Freeman recorded depreciation using the straight-line method, a five-year service life, and a $2,500 residual value. Tractors are included in the Equipment account. Required: Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 1 Record the sale of tractor. Note: Enter debits before credits. \table[[Transaction,General Journal,Deblt,Credit],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]
- Blue Spruce Inc. trades its used machine (cost $11,900 less $4,100 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $11,000), Blue Spruce also paid cash of $3,200. Prepare journal entry to record exchange of assets by Blue Spruce Inc.Beck Company and Train Corporation exchange equipment. Relevant information are as follows: Beck Train Equipment 2,000,000 2,500,000 Accumulated depreciation 1,125,000 1,687,500 Fair value 750,000 1,000,000 Cash payment/(received) 250,000 (250,000) Beck Company also traded an old equipment with a dealer for a newer model. Relevant information are as follows:Old equipment:Cost P1,400,000Accumulated depreciation 1,000,000Fair value 350,000Trade in value 500,000New equipment:List price P2,000,000Trade in value of old equipment (500,000)Cash payment P1,500,000Required1. Prepare journal entries related to the exchange using the following assumptions:a) Fair value approachb) Trade in value approachA company recently traded in an older model of equipment for a new model. The old model's book value was $216,000 (original cost of $476,000 less $260,000 in accumulated depreciation) and its fair value was $240,000. The company paid $64,000 to complete the exchange which has commercial substance. Required: Prepare the journal entry to record the exchange. Note: 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
- a. Morrell Corporation disposed of two computers at the end of their useful lives. The computers had cost $4,740 and their Accumulated Depreciation was $4,740. No residual value was received. b. Assume the same information as (a), except that Accumulated Depreciation, updated to the date of disposal, was $3,480. Required: Prepare journal entries to record above transactions. (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 A > Record the disposal of computers that had cost $4,740 and their accumulated depreciation to the date of disposal was $4,740. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 4,740 4,7401. Denver, Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000 a few years ago and a fair value of $60,000. Prepare the journal entry to record the exchange. Assume the exchange has no commercial substance. 2. Metro Inc. trades its used machine for a new model at Denver Inc. The used machine has a book value of $8,000 (original cost of $12,000) and a fair value of $4,000. The new model lists for $15,000. Denver gives Metro a trade-in allowance of $7,000 for the used machine, $3,000 more than its fair value. Prepare a journal entry for Metro, assuming commercial substance.Riverbed Corporation exchanged equipment used in its manufacturing operations for equipment used in the operations of Marin Ltd. The following information pertains to the exchange: Riverbed Corp. Marin Ltd. $84,200 $84,200 Equipment (cost) Accumulated depreciation 46,700 40,600 Fair value of old equipment 42,200 43,500 Cash given up 1,300 Both companies agreed that the exchange did not have commercial substance. Prepare the necessary journal entries to record the asset exchange on the books of both companies. (Credit account titles are automatically indented when the amount is entered. Do r indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Riverbed Corporation: Account Titles and Explanation Debit Credit