Question: answer all correctly. will like & thumbs up On August 1, Sage, Inc exchanged productive assets with Pronghorn, Inc. Sage's asset is referred to below

answer all correctly. will like & thumbs up  answer all correctly. will like & thumbs up On August 1,
Sage, Inc exchanged productive assets with Pronghorn, Inc. Sage's asset is referred

On August 1, Sage, Inc exchanged productive assets with Pronghorn, Inc. Sage's asset is referred to below as "Asset A and Pronghorn' is referred to as "Asset B." The following facts pertain to these assets. Original cost Accumulated depreciation (to date of exchange) Fair value at date of exchange Cash paid by Sage, Inc Cash received by Pronghorn, Inc Asset A $113,280 47,200 70,800 17,700 Asset B $129,800 55,460 88,500 17,700 Assuming that the exchange of Assets A and Blacks commercial substance, record the exchange for both Sage, Inc. and Pronghorn, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, eg. 1.25124 and final answer to decimal places eg. 58,971. Credit account titles are automatically indented when 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.) Debit Credit Account Titles and Explanation Sage. Inc's Books Machinery Accumulated Depreciation Machinery Machinery Cash Pronghorn, Inc.'s Books Cash Machinery Accumulated Depreciation Machinery Machinery Gain on Disposal of Machinery

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!