Sitra Company, assuming that the exchange lacks commercial substance. Prepare the necessary journal entries to record the exchange for both Zallaq Company and Answer: Callag Company 60,000 15,000 47.000 75,000 15,000
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- 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. Asset A Asset B Original cost $117,120 $134,200 Accumulated depreciation (to date of exchange) 48,800 57,340 Fair value at date of exchange 73,200 91,500 Cash paid by Crane, Inc. 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 Crane, Inc.’s Books Cheyenne, Inc.’s BooksAn entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amou before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets isOn August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred to below as “Asset A,” and Windsor’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $ 134,400 $ 154,000 Accumulated depreciation (to date of exchange) 56,000 65,800 Fair value at date of exchange 84,000 105,000 Cash paid by Bonita, Inc. 21,000 Cash received by Windsor, Inc. 21,000 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Bonita, Inc. and Windsor, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 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 0 for the amounts.) BONITA INC ENTRY: WINDSOR INC ENTRY: I answered this myself but got it…
- On August 1, Bonita, Inc. exchanged productive assets with Windsor, Inc. Bonita’s asset is referred to below as “Asset A,” and Windsor’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A Asset B Original cost $ 134,400 $ 154,000 Accumulated depreciation (to date of exchange) 56,000 65,800 Fair value at date of exchange 84,000 105,000 Cash paid by Bonita, Inc. 21,000 Cash received by Windsor, Inc. 21,000 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Bonita, Inc. and Windsor, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 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 0 for the amounts.) BONITA INC ENTRY: WINDSOR INC ENTRY: I answered this myself but got it…An entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The balance of revaluation surplus as of 30 June 2020 after classification of the assets as held for sale isAn entity accounts for non-current assets using the revaluation model. On 30 June 2020, the entity classified two items of non-current assets as held for sale in accordance with PFRS5. The following information relates to these assets: Asset 1 Asset 2 Carrying amount before classification as held for sale P400,000 P300,000 Revaluation surplus before classification as held for sale 60,000 30,000 Fair value, 30 June 2020 450,000 260,000 Estimated costs to sell 20,000 12,000 The total expense to be recognized in profit or loss related to these assets is
- On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to below as “Asset A,” and Wiggins’ is referred to as “Asset B.” The following facts pertain to these assets. Asset A 0Asset B0 Original cost $96,000 $110,000 Accumulated depreciation (to date of exchange) 40,000 47,000 Fair value at date of exchange 60,000 75,000 Cash paid by Hyde, Inc. 15,000 Cash received by Wiggins, Inc. 15,000 Instructions a. Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles. b. Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Hyde, Inc. and Wiggins, Inc. in accordance with generally accepted accounting principles.On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset $ 155,000 75,000 71,500 To equalize the exchange, Phifer paid Robers $8,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. 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 worksheetHow much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.
- NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. What is the amount of impairment loss to be reported for 2021? * Your answerNATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. At what amount should the equipment be measured on December 31, 2021?NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. What is the amount of impairment loss to be reported for 2021?
