Question
In: Accounting
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange...
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
| Denver | Bristol | |
|---|---|---|
| Cost | $90,000 | $45,000 |
| Accumulated depreciation | 55,000 | 25,000 |
| Fair value | 30,000 | 30,000 |
Required:
| 1. | Assuming the exchange has commercial substance, prepare journal entries for both Denver and Bristol to record the exchange. |
| 2. | Assuming the exchange does not have commercial substance, prepare journal entries for both Denver and Bristol to record the exchange. |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange...
Two independent companies, Denver and Bristol, each own a
warehouse, and they agree to an exchange in which no cash changes
hands. The following information for the two warehouses is
available:
Denver
Bristol
Cost
$105,000
$55,500
Accumulated depreciation
53,000
22,000
Fair value
45,000
45,000
Required:
1.
Assuming the exchange has
commercial substance, prepare journal entries for Denver and
Bristol to record the exchange.
2.
Assuming the exchange does not
have commercial substance, prepare journal entries for Denver and
Bristol to...
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange...
Two independent companies, Denver and Bristol, each own a
warehouse, and they agree to an exchange in which no cash changes
hands. The following information for the two warehouses is
available:
Denver
Bristol
Cost
$90,000
$45,000
Accumulated depreciation
55,000
25,000
Fair value
30,000
30,000
All transactions on this page must be entered (except for post
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GENERAL JOURNAL
Score: 30/101
DATE
ACCOUNT TITLE
POST. REF.
DEBIT
CREDIT
1
2...
Two independent companies, Denver and Bristol, each own a warehouse, and Denver agrees to pay Bristol...
Two independent companies, Denver and Bristol, each own a
warehouse, and Denver agrees to pay Bristol $2,000 to complete the
exchange. The following information for the two warehouses is
available:
Denver
Bristol
Cost
$90,000
$47,000
Accumulated depreciation
50,000
20,000
Fair value
33,000
35,000
Required:
Assuming the exchange has commercial substance, prepare journal
entries for Denver and Bristol to record the exchange
Two independent companies, Bayer and Monsanto are in the chemical and pharmaceutical industries. Each owns a...
Two independent companies, Bayer and Monsanto are in the
chemical and pharmaceutical industries. Each owns a piece of
laboratory equipment used in research and development of new
products, but each would like the other firm’s equipment. They
agree to exchange the equipment. An appraiser was hired, and from
her report and the companies' records, the following information
was obtained: Bayer’s Equipment Monsanto's Equipment Cost $826,000
$460,000 Accumulated depreciation $250,000 $100,000 Fair value
based upon appraisal $720,000 $630,000 The exchange was...
For each of the following independent statements, state whether you agree or disagree with the statement...
For each of the following independent statements, state
whether you agree or disagree with the statement and fully
explain your answer.
Required
a. The level of audit risk
is low when inherent risk is low.
b. When the auditor
assesses control risk and inherent risk as high, the
acceptable detection risk is
low.
c. When an audit firm
issues the correct opinion on the financial statements under audit,
it still has engagement risk.
d. If...
For each of the following independent statements, state whether you agree or disagree with the statement...
For each of the following independent statements, state
whether you agree or disagree with the statement and fully
explainyour answer.
Required
a. Each of the
following changes (considered individually, and holding other
things constant) can be expected to decrease the level of
detection risk
associated with the auditor's
substantive tests:
decreasing materiality
reducing the level of audit risk
b. Auditing
standards require that if an auditor plans to assess control risk
as high, internal controls must be of higher quality and the...
Fill in the missing amounts for the following 4 companies. Each case is independent of the...
Fill in the missing amounts for the following 4 companies. Each
case is independent of the others. Assume that only one product is
being sold by each company:
Company A
Company B
Company C
Company D
Units Sold
600
900
Sales in Dollars
$30,000
$63,000
$235,000
$
Total Variable Expenses
$6,600
$
$
$135,000
Per Unit C/M
$
$60
$270
$140
Total Fixed Expenses
$20,600
$35,000
$144,000
$
Net Operating Income (Loss)
$
$7,000
$(9,000)
$(25,000)
Do you agree with Canon’s decision to allow the two acquired companies to continue to operate...
Do you agree with Canon’s decision to allow the two acquired
companies to continue to operate independently? What are the pros
and cons?
1. Consider the data for each of the following four independent companies. Calculate the missing values...
1. Consider the data for each of the following
four independent companies. Calculate the missing values in the
table below. For margin and ROI, enter your answers as percentages,
rounded to two decimal places. For example, the decimal value
.03827 would be entered as "3.83" percent. For turnover, enter your
answer as a decimal value rounded to two decimal places.
A
B
C
D
Revenue
$10,000
$49,000
$96,000
$
Expenses
$8,000
$
$90,240
$
Operating income
$2,000
$12,250
$
$...
1. Consider the data for each of the following four independent companies. Calculate the missing values...
1. Consider the data for each of the following
four independent companies. Calculate the missing values in the
table below. For margin and ROI, enter your answers as percentages,
rounded to two decimal places. For example, the decimal value
.03827 would be entered as "3.83" percent. For turnover, enter your
answer as a decimal value rounded to two decimal places.
A
B
C
D
Revenue
$12,500
$48,000
$96,000
$
Expenses
$10,000
$
$90,240
$
Operating income
$2,500
$12,000
$
$...
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