On January 2, 2015, Temptations Corporation paid $ 31,500 in cash and exchanged a chocolate mixing machine,
Question:
Required
a. Record the journal entry on the books of the Temptations Corporation to record the exchange assuming the transaction altered the economic positions of the parties.
b. Assume that the fair value of the old machine is now estimated at $ 562,500 and that new mixing machine had been appraised at $ 594,000. In addition, the exchange will not materially change the economic positions of the parties to the transaction. Record the journal entry on the books of the Temptations Corporation to record the exchange of the machines. All other information remains the same as in part (a).
c. Repeat part (b) on the books of Rascals Candy, Inc. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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