Stellar Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Pearl Company. The following information pertains to the exchange.     Stellar Co.   Pearl Co. Equipment (cost)   $36,960     $36,960   Accumulated depreciation   25,080     13,200   Fair value of equipment   16,500     20,460   Cash given up   3,960     Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (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 Stellar Company:     enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Pearl Company:     enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (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 Stellar Company     enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Pearl Company     enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange them. The following information for the two warehouses is available:   Denver Bristol Cost $100,000 $62,000 Accumulated depreciation 50,000 25,000 Fair value 47,000 45,000         Bristol agrees to pay Denver $2,000 to complete the exchange. Required:   Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.   CHART OF ACCOUNTS Denver and Bristol General Ledger   ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Building (Warehouse (new)) 182 Building (Warehouse (old)) 185 Equipment 198 Accumulated Depreciation   LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable   EQUITY 311 Common Stock 331 Retained Earnings   Assume the exchange has commercial…

On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to below as "Asset A", and Birzeit's is referred to as "Asset B". The following facts pertain to these assets. Assume the exchange lacks commercial substance. Information Al-Quds Company Birzeit Company (Asset A) (Asset B) Original cost $200,000 $100,000 Acc. dep. to date of exchange 90,000 30,000 Fair value at date of 160,000 exchange Cash received 30,000 Cash paid 30,000 The recognized gain by Al-Quds Company is:

Company Inc., exchanged land and cash of $8,000 for equipment. The land was purchased at $55,000 a few years ago and a fair value of $60,000.                         Prepare the journal entry to record the exchange. Assume the exchange has no commercial substance.

Item 22   Below is information relative to an exchange of similar assets by a company. Assume the exchange has commercial substance. Old Equipment Cash Book Value Fair Value Paid $ 49,700 $ 60,500 $ 14,100 The company would record the new equipment at:

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A company purchased equipment valued at $263,000. It traded in old equipment for a $164,000 trade-in allowance and the company paid $99,000 cash with the trade-in. The old equipment cost $250,000 and had accumulated depreciation of $100,000. This transaction has commercial substance. What is the recorded value of the new equipment? Multiple Choice $249,000. $99,000. $263,000. $164,000. $150,000.

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: 1. Calculate the amount paid for goodwill. 2. Determine the financial statement effects of the acquisition. Required 1 Required 2 Complete this question by entering your answers in the tabs below. Book Value $ 11,400,000 20,200,000 3,400,000 7,800,000 13,200,000 Assets Determine the financial statement effects of the acquisition. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answer in millions rounded to 1 decimal place. (i.e. 5,500,000 should be entered as 5.5). Accounts Payable Accounts Receivable Accumulated Depreciation Advertising Expense Fair Value $ 14,400,000 26,200,000 4,400,000 7,800,000 12,200,000 Balance Sheet Liabilities…

China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $21,500 and $11,800 (original cost of $44,000 less accumulated depreciation of $32,200), respectively. To equalize market values of the exchanged assets, China Inn paid $8,900 in cash to Midwest Chicken.   Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

The following information relates to an exchange of assets by Wharton Company. The exchange lacks commercial substance.     Old Equipment     Book Value Fair Value Cash Paid Case I $75,000 $85,000 $15,000 Case II $50,000 $45,000 $7,000   For Case I, Wharton records the equipment at $ Answer    on its books and reports a gain or (loss) of $ Answer    on the exchange.