chap 9 question 7

Current Attempt in Progress Presented below are two independent transactions. Both transactions have commercial substance 1. Blue Spruce Co.exchanged old trucks (cost $62,100 less $20,100 accumulated depreciation) plus cash of $17,100 for new trucks. The old trucks had a fair value of $36,900 Blossom Inc. trades its used machine (cost $11.670 less $3,890 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $10,880), Blossom also paid cash of $3,000. 2 (a) Your answer is partially correct. Prepare the entry to record the exchange of assets by Blue Spruce Co. (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 for the amounts.) Account Titles and Explanation Debit Credit Cost of Goods Sold 62,100 Accumulated Depreciation Buildings 20,100 42000 36.900 Loss on Disposal of Plant Assets 5100 e Textbook and Media