ABC Company , which manufactures shoes, hired a recent college graduate to work in its accounting...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
ABC Company , which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. ABC Corporation gave the machine plus €420 to XYZ Business Machine AG (dealer) in exchange for a new machine. Assume the following information about the machines: Old machine New machine Machine Cost 290 300 Accumulated deprecation 140 Fair value 100 520 Instructions For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) a- From buyer perspective 50 marks b- From seller perspective 50 marks ABC Company , which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. ABC Corporation gave the machine plus €420 to XYZ Business Machine AG (dealer) in exchange for a new machine. Assume the following information about the machines: Old machine New machine Machine Cost 290 300 Accumulated deprecation 140 Fair value 100 520 Instructions For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) a- From buyer perspective 50 marks b- From seller perspective 50 marks
Expert Answer:
Answer rating: 100% (QA)
Solution Part a From Buyer Perspective ie ABC Company Journ... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
Students also viewed these accounting questions
-
You borrow $30,000. You make half-yearly repayments over the next five years at an interest rate of 12% per half-year. What is the size of each repayment? a. $5,309.52 b. $4,076.04 c. $8,322.29 d....
-
For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not...
-
On the first day of the fiscal year, a company issues a $1,000,000, 11%, 10-year bond that pays semiannual interest of $55,000 ($1,000,000 11% ), receiving cash of $942,646. Journalize the bond...
-
For the standard deductions, there are specified contribution tables to be followed as discussed in the previous modules. More examples: 1. Compute for Tita Pau's monthly, semi-monthly, weekly and...
-
Crafty Resources Ltd. is a new creator and publisher of childrens craft kit books. It has created kits for dolls, twirled paper crafts, paper doll clothes, and so on. The publishing industry is...
-
The Case Study - "Lemonade: Delighting Insurance Customers with AI and Behavioral Economics". 1. How do you explain the phenomenal growth experienced by Lemonade? 2. Does Lemonade create a unique...
-
Consider the three models a. \(y=\beta_{0}+\beta_{1}(1 / x)+\varepsilon\) b. \(1 / y=\beta_{0}+\beta_{1} x+\varepsilon\) c. \(y=x /\left(\beta_{0}-\beta_{1} x ight)+\varepsilon\) All of these models...
-
Use the information for Lockard Company given in BE11-2. (a) Compute 2012 depreciation expense using the double-declining-balance method. (b) Compute 2012 depreciation expense using the...
-
Time 2.9 s Range 8.06 m Height 4.44 m Part 3: Examining the factors that affect the range of a horizontal launched projectile. 1. Click to clear the trajectory. 2. Change the height of cannon to 10 m...
-
Explain why correctly owning assets is important to the personal finances of people, especially couples.
-
Comparing Different Linkage Methods. The Football Bowl Subdivision (FBS) level of the National Collegiate Athletic Association (NCAA) consists of over 100 schools. Most of these schools belong to one...
-
Paula is a retailer operating in Toowoomba and she received the following amounts during the current tax year ended 30 June: Paula received $320 000 from the sale of an investment property she had...
-
1) Pursuant to a verbal contract, Pamela was hired and worked from July 1 as a lifeguard for the outdoor pool at the Midnight Sun Resort and Spa in Northern Alberta. When she arrived for work on the...
-
Elizabeth, a resident, carries on a retail business selling health foods to the public. Up to 30 April o the current tax year she operated her business from her own premises. On 30 April she sold her...
-
find the value of X x+30 2x+1 = 3
-
Section 107 (3) of the Industrial and Labour Relations Act, Cap 269 of the Laws of Zambia provides that; no employer or other person shall take part in a lockout and no employee, trade union or other...
-
Explain why the multiplier effect of a tax cut on aggregate demand is lower if we take into account the aggregate supply curve, then say what happens if the tax cut has effects incentives.
-
The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.
-
Young Companys December 31, 2008, trial balance includes the following accounts: Investment in Common Stock $70,000; Retained Earnings $114,000; Trademarks $31,000; Preferred Stock $172,000; Common...
-
Below is the retained earnings account for the year 2008 for LeClair Corp. Instructions (a) Prepare a corrected retained earnings statement. LeClair Corp. normally sells investments of the type...
-
The following note appears in the Summary of Significant Accounting Policies section of the annual report of Westinghouse Electric Corporation. Westinghouse Electric Corporation Summary of...
-
What is the daughter nucleus of the decay? The Curiosity rover sent to explore the surface of Mars has an electric generator powered by heat from the radioactive decay of \({ }^{238} \mathrm{Pu}\), a...
-
Because the decay products in the above fission reaction are neutron rich, they will likely decay by what process? A. Alpha decay B. Beta decay C. Gamma decay The uranium isotope \({ }^{235}...
-
What statement can be made about the masses of atoms in the above reaction? A. \(m\left({ }_{92}^{235} \mathrm{U} ight)>m\left({ }_{56}^{141} \mathrm{Ba} ight)+m\left({ }_{36}^{92} \mathrm{Kr}...
Study smarter with the SolutionInn App