During the current year, Culver Construction Ltd. traded in two relatively new small cranes (cranes no....

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During the current year, Culver Construction Ltd. traded in two relatively new small cranes (cranes no. 6RT and $79) for a larger crane that Culver expects will be more useful for the particular contracts that the company has to fulfill over the next couple of years. The new crane is acquired from Pronghorn Manufacturing Inc., which has agreed to take the smaller equipment as trade-ins and also pay $15,500 cash to Culver. The new crane cost Pronghorn $172,000 to manufacture and is classified as inventory. The following information is available: Culver Pronghorn Cost of crane #6RT $124,000 Cost of crane #S79 119,000 Accumulated depreciation, #6RT 13,000 Accumulated depreciation, #579 16,000 Fair value, #6RT 125,000 Fair value, #S79 87,500 Fair value of new crane $197,000 Cash paid 15,500 Cash received 15,500 Assume that this exchange has commercial substance. Prepare the journal entries on the books of (1) Culver Construction and (2) Pronghorn Manufacturing. Pronghorn uses a perpetual inventory system. (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.) Account Titles and Explanation Account Titles and Explanation (To record sale with trade-in) (To record cost of goods sold) Culver Construction Debit Credit Pronghorn Manufacturing Debit Credit Assume that this exchange lacks commercial substance. Prepare the journal entries on the books of (1) Culver Construction and (2) Pronghorn Manufacturing. Pronghorn uses a perpetual inventory system. (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.) Account Titles and Explanation Culver Construction Debit Credit > > > Pronghorn Manufacturing Account Titles and Explanation Debit Credit During the current year, Culver Construction Ltd. traded in two relatively new small cranes (cranes no. 6RT and $79) for a larger crane that Culver expects will be more useful for the particular contracts that the company has to fulfill over the next couple of years. The new crane is acquired from Pronghorn Manufacturing Inc., which has agreed to take the smaller equipment as trade-ins and also pay $15,500 cash to Culver. The new crane cost Pronghorn $172,000 to manufacture and is classified as inventory. The following information is available: Culver Pronghorn Cost of crane #6RT $124,000 Cost of crane #S79 119,000 Accumulated depreciation, #6RT 13,000 Accumulated depreciation, #579 16,000 Fair value, #6RT 125,000 Fair value, #S79 87,500 Fair value of new crane $197,000 Cash paid 15,500 Cash received 15,500 Assume that this exchange has commercial substance. Prepare the journal entries on the books of (1) Culver Construction and (2) Pronghorn Manufacturing. Pronghorn uses a perpetual inventory system. (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.) Account Titles and Explanation Account Titles and Explanation (To record sale with trade-in) (To record cost of goods sold) Culver Construction Debit Credit Pronghorn Manufacturing Debit Credit Assume that this exchange lacks commercial substance. Prepare the journal entries on the books of (1) Culver Construction and (2) Pronghorn Manufacturing. Pronghorn uses a perpetual inventory system. (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.) Account Titles and Explanation Culver Construction Debit Credit > > > Pronghorn Manufacturing Account Titles and Explanation Debit Credit