Problem 10 9 On August 1, Crane, Inc exchanged productive assets with Cheyenne, Inc Cranes asset is referred to below as Asset A, and Cheyenne is referred to as Asset B The following facts pertain to these assets Asset A Asset B Original cost $103,680 $118,800 Accumulated depreciation (to date of exchange) 43,200 50,760 Fair value at date of exchange 64,800 81,000 Cash paid by Crane, Inc 16,200 Cash received by Cheyenne, Inc 16,200 Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Crane, Inc and Cheyenne, Inc in accordance with generally accepted accounting principles (Round answers to 0 decimal places, e g 5,275 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 0 for the amounts ) Account Titles and Explanation Debit Credit Crane, Inc s Books CashMachinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B) Gain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)Cash Accumulated Depreciation Machinery (B)Gain on Disposal of MachineryCashMachinery (B)Accumulated Depreciation Machinery (A)Machinery (A) Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation Machinery (B)Accumulated Depreciation Machinery (A)CashMachinery (A) Machinery (A)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)CashGain on Disposal of MachineryMachinery (B) Cheyenne, Inc s Books Gain on Disposal of MachineryCashMachinery (B)Accumulated Depreciation Machinery (B)Machinery (A)Accumulated Depreciation Machinery (A) Machinery (B)Gain on Disposal of MachineryAccumulated Depreciation Machinery (A)CashAccumulated Depreciation Machinery (B)Machinery (A) Machinery (A)Accumulated Depreciation Machinery (A)CashGain on Disposal of MachineryAccumulated Depreciation Machinery (B)Machinery (B) Machinery (B)Accumulated Depreciation Machinery (B)Gain on Disposal of MachineryCashAccumulated Depreciation Machinery (A)Machinery (A) Machinery (B)Accumulated Depreciation Machinery (B)CashGain on Disposal of MachineryAccumulated Depreciation Machinery (A)Machinery (A) Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Crane, Inc and Cheyenne, Inc in accordance with generally accepted accounting principles (Round intermediate calculations to 5 decimal places, e g 1 25124 and final answer to 0 decimal places e g 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 0 for the amounts ) Account Titles and Explanation Debit Credit Crane, Inc s Books Accumulated Depreciation Machinery (B)CashAccumulated Depreciation Machinery (A)Gain on Disposal of MachineryMachinery (B)Machinery (A) Accumulated Depreciation Machinery (B)Accumulated Depreciation Machinery (A)Gain on Disposal of MachineryMachinery (B)CashMachinery (A) CashAccumulated Depreciation Machinery (B)Gain on Disposal of MachineryAccumulated Depreciation Machinery (A)Machinery (B)Machinery (A) Machinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)Cash Cheyenne, Inc s Books CashGain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B) Machinery (A)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)Gain on Disposal of MachineryCashMachinery (B) Machinery (A)Machinery (B)Accumulated Depreciation Machinery (A)CashAccumulated Depreciation Machinery (B)Gain on Disposal of Machinery Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)Gain on Disposal of MachineryMachinery (B)CashMachinery (A) CashGain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation Machinery (A)Accumulated Depreciation Machinery (B)

The Answer is in the image, click to view ...

Question: Problem 10-9 On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Cranes asset is referred to below as Asset A, and Cheyenne is

Problem 10-9 On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Cranes asset is referred to below as Asset A, and Cheyenne is referred to as Asset B. The following facts pertain to these assets.

Asset A	Asset B
Original cost	$103,680	$118,800
Accumulated depreciation (to date of exchange)	43,200	50,760
Fair value at date of exchange	64,800	81,000
Cash paid by Crane, Inc.	16,200
Cash received by Cheyenne, Inc.	16,200

Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Crane, Inc. and Cheyenne, Inc. in accordance with generally accepted accounting principles.(Round answers to 0 decimal places, e.g. 5,275. 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Crane, Inc.s Books
CashMachinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)
Gain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Cash
Accumulated Depreciation-Machinery (B)Gain on Disposal of MachineryCashMachinery (B)Accumulated Depreciation-Machinery (A)Machinery (A)
Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (B)Accumulated Depreciation-Machinery (A)CashMachinery (A)
Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashGain on Disposal of MachineryMachinery (B)
Cheyenne, Inc.s Books
Gain on Disposal of MachineryCashMachinery (B)Accumulated Depreciation-Machinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)
Machinery (B)Gain on Disposal of MachineryAccumulated Depreciation-Machinery (A)CashAccumulated Depreciation-Machinery (B)Machinery (A)
Machinery (A)Accumulated Depreciation-Machinery (A)CashGain on Disposal of MachineryAccumulated Depreciation-Machinery (B)Machinery (B)
Machinery (B)Accumulated Depreciation-Machinery (B)Gain on Disposal of MachineryCashAccumulated Depreciation-Machinery (A)Machinery (A)
Machinery (B)Accumulated Depreciation-Machinery (B)CashGain on Disposal of MachineryAccumulated Depreciation-Machinery (A)Machinery (A)

Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Crane, Inc. and Cheyenne, Inc. in accordance with generally accepted accounting principles.(Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Crane, Inc.s Books
Accumulated Depreciation-Machinery (B)CashAccumulated Depreciation-Machinery (A)Gain on Disposal of MachineryMachinery (B)Machinery (A)
Accumulated Depreciation-Machinery (B)Accumulated Depreciation-Machinery (A)Gain on Disposal of MachineryMachinery (B)CashMachinery (A)
CashAccumulated Depreciation-Machinery (B)Gain on Disposal of MachineryAccumulated Depreciation-Machinery (A)Machinery (B)Machinery (A)
Machinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Cash
Cheyenne, Inc.s Books
CashGain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)
Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Gain on Disposal of MachineryCashMachinery (B)
Machinery (A)Machinery (B)Accumulated Depreciation-Machinery (A)CashAccumulated Depreciation-Machinery (B)Gain on Disposal of Machinery
Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Gain on Disposal of MachineryMachinery (B)CashMachinery (A)
CashGain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)

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!

\ help with entries please On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Crane's asset is referred to below as "Asset A," and Cheyenne' is referred to as "Asset B." The...

On August 1 , Crane, Inc. exchanged productive assets with Cheyenne, Inc. Crane's asset is referred to below as "Asset A , " and Cheyenne' is referred to as "Asset B . " The following facts pertain...

On August 1, Crane, Inc. exchanged productive assets with Cheyenne, Inc. Crane's asset is referred to below as "Asset A," and Cheyenne' is referred to as "Asset B." The following facts pertain to...

On August 1, Crane, Inc exchanged productive assets with Cheyenne, Inc, Crane's asset is referred to belowas "Asset A," and Cheyenne' is referred to as "Asset B." The following facts pertain to these...

Problem 10-9 On August 1, Vaughn, Inc. exchanged productive assets with Bramble, Inc. Vaughn's asset is referred to below as "Asset A," and Bramble' is referred to as "Asset B." The following facts...

Problem 10-9 On August 1, Wildhorse, Inc. exchanged productive assets with Sheffield, Inc, Wildhorse's asset is referred to below as "Asset A," and Sheffield is referred to as Asset B." The following...

What are the real economic impacts and long-term effects of trade sanctions? Assume that the United States imposes punishingly high tariffs of 100 percent on Japanese cars. Immediate costs might be...

A rigid tank with a volume of 3.5 m3 contains 5 kg of saturated liquid-vapor mixture of H2O at 80oC. The tank is slowly heated until all the liquid in the tank is completely vaporized. Determine the...

Pina Colada Corp. factors \ $ 6 2 0 , 0 0 0 of accounts receivable with Kingbird, Inc., Inc. on a with recourse basis. Kingbird, Inc. will collect the receivables. The receivable records are...

5 6 Quality control and quality assurance are equivalent approaches to managing quality 7 8 9 TRUE FALSE

5. What does it mean when we say the evaluation comes before the presenta-tion?.

1. Discuss the following statements: a) Predetermined is not the same thing as predictable. b) When we are aware of the consequences of our behaviour, we can change our behaviour. c) What we know is...

2. In this chapter, the reader should reflect on the following concepts: