Prepare journal entry for acadia assuming that transaction

Assignment Help Financial Accounting

Reference no: EM133346212

Question: Acadia Inc. exchanged machinery with fair value of $1,170,000, an original cost of $1,700,000, and a net book value of $900,000, for machinery that Bonnie Corp. owns. Bonnie's machinery had a recorded cost of $2,160,000, and accumulated depreciation of $1,188,000. The fair value of Bonnie's machinery is unknown. Bonnie also paid Acadia $30,000 in the exchange. Assume depreciation has been updated to the date of exchange.

REQUIRED Use a properly formatted TABLE for your answer. Show your work at all times.

(A) Prepare the journal entry for Acadia assuming that the transaction lacks commercial substance.

(B) Prepare the journal entry for Bonnie assuming that the transaction has commercial substance.

Reference no: EM133346212

Questions Cloud

Does the use of oci with fair value accounting lead : does the use of OCI with Fair value accounting lead to understandability and transparency? Did the US GAAP amendment eliminate a counterintuitive result

What is in this bill and is environmental health addressed : it has been touted as the most significant environmental legislation in the history of this country. What is in this bill? Is environmental health addressed?

Prepare the journal entries to record these transactions : Prepare the journal entries to record these transactions on the books of Chevalier Co. using a periodic inventory system

What internal controls do you encounter on a regular basis : what internal controls do you encounter on a regular basis? Are those controls appreciated or viewed as a nuisance that must be worked around?

Prepare journal entry for acadia assuming that transaction : Prepare the journal entry for Acadia assuming that the transaction lacks commercial substance. Prepare the journal entry for Bonnie assuming

Calculating the inventoriable product cost : Calculating the inventoriable product cost and Calculate the predetermined manufacturing overhead rate at the beginning of the year

How would that affect forecasts : How would that affect forecasts of the following: sales growth; NOPAT /sales; net working capital/sales; net long-term assets/sales.

What is dividend policy and what could be the form : What is placement? differentiate between private and public placement and What is dividend policy and what could be the form of dividends

Compute net income for the first year for alpaca corporation : The company paid $3,500 in interest that was the amount owed for the year, and paid $5,400 for a two-year insurance policy on the first day of business.

User Account

All Pages