On March 1, 2015, XYZ Co. exchanges two small pieces of equipment (A and B) for...

 

Transcribed Image Text:

On March 1, 2015, XYZ Co. exchanges two small pieces of equipment (A and B) for a larger one (C) from NorthCo. NorthCo produces equipment and classifies all equipment as inventory. NorthCo has agreed to take the equipment A and B, and pay XYZ Co. $72,000 cash in exchange for the equipment C. Equipment C cost $170,000 to manufacture. Following is information regarding the exchange. XYZ Co. NorthCo Equipment A at cost. Accumulated depreciation, equipment, A Fair value equipment A Equipment B at cost.. Accumulated depreciation, equipment, B Fair value equipment B Fair value equipment C Cash paid Cash received Date Please make sure your final answer(s) are accurate to 2 decimal places. (a) Record the journal entry for the exchange on the books of both XYZ Co. and NorthCo. Assume the exchange has commercial substance. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). XYZ Co. NorthCo Date General Journal Account/Explanation +1-1 $100,000 19,000 90,000 165,000 10,000 162,000 72,000 General Journal Account/Explanation $180,000 72,000 Page G1 PR Debit Credit Date (b) Record the journal entry for the exchange on the books of both XYZ Co. and NorthCo. Assume the exchange does not have commercial substance. XYZ Co. NorthCo Page G2 PR Debit Credit +- Date General Journal Account/Explanation +- Page G1 PR Debit Credit General Journal Account/Explanation Page G2 PR Debit Credit On March 1, 2015, XYZ Co. exchanges two small pieces of equipment (A and B) for a larger one (C) from NorthCo. NorthCo produces equipment and classifies all equipment as inventory. NorthCo has agreed to take the equipment A and B, and pay XYZ Co. $72,000 cash in exchange for the equipment C. Equipment C cost $170,000 to manufacture. Following is information regarding the exchange. XYZ Co. NorthCo Equipment A at cost. Accumulated depreciation, equipment, A Fair value equipment A Equipment B at cost.. Accumulated depreciation, equipment, B Fair value equipment B Fair value equipment C Cash paid Cash received Date Please make sure your final answer(s) are accurate to 2 decimal places. (a) Record the journal entry for the exchange on the books of both XYZ Co. and NorthCo. Assume the exchange has commercial substance. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). XYZ Co. NorthCo Date General Journal Account/Explanation +1-1 $100,000 19,000 90,000 165,000 10,000 162,000 72,000 General Journal Account/Explanation $180,000 72,000 Page G1 PR Debit Credit Date (b) Record the journal entry for the exchange on the books of both XYZ Co. and NorthCo. Assume the exchange does not have commercial substance. XYZ Co. NorthCo Page G2 PR Debit Credit +- Date General Journal Account/Explanation +- Page G1 PR Debit Credit General Journal Account/Explanation Page G2 PR Debit Credit

Answer rating: 100% (QA)

Doesnt have commercial substan le X Y Z Co 1March North Co mar... View the full answer