Cramer Corp. sells idle machinery to Enyart Company on July 1, 2015, for $40,000. Cramer agrees to

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Cramer Corp. sells idle machinery to Enyart Company on July 1, 2015, for $40,000. Cramer agrees to repurchase this equipment from Enyart on June 30, 2016, for a price of $42,400 (an imputed interest rate of 6%).

Instructions

(a) Prepare the journal entry for Cramer for the transfer of the asset to Enyart on July 1, 2015.

(b) Prepare any other necessary journal entries for Cramer in 2015.

(c) Prepare the journal entry for Cramer when the machinery is repurchased on June 30, 2016.

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Related Book For answer-question

Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

Question Posted: Mar 18, 2024 04:00 AM

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Cramer Corp. sells idle machinery to Enyart Company on July 1, 2015, for $40,000. Cramer agrees to

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Intermediate Accounting IFRS Edition

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