Reference no: EM132489228
Question 1 - On 1 June 2020, Komo Co. exchanged a piece of equipment for a machine with Mane Co. And Komo paid $30,000 in cash to complete the exchange.
Based on Komo Co.'s accounting record, the equipment has a book value of $50,000 (original cost of $90,000 minus accumulated depreciation $40,000). The fair value of the equipment is $70,000.
Based on Mane Co's accounting record, the machine has a book value of $120,000 (original cost of $150,000 minus accumulated depreciation $30,000).
Required -
a. Prepare the journal entry for Mane Co. assuming the exchange has commercial substance to Komo Co.
b. Prepare the journal entry for Komo Co., assuming the exchange has NO commercial substance to Mane Co.
Question 2 - On 1 January 2016, Brad Corp. purchased an equipment for 1,000,000. This equipment is depreciated using a straight-line method. The useful life is 9 years and the residual value is expected to be 100,0000. The company uses revaluation model for the subsequent measurement of the equipment. The equipment is revalued at each year-ending on 31 December, if necessary. On 31 December 2016, the fair value of the equipment is 740,000 with the same residual value at 100,000. On 31 December 2017, the asset was revalued again at the amount of 980,000 with residual value of 0. The company's policy is to use the elimination method for any accumulated depreciation at the date of revaluation and transfer the revaluation reserve to retained earnings when the asset is disposed of. Brad Crop. sold the asset on 1 July 2018 for a cash payment of 1,000,000. (25 marks)
Required - Prepare relevant journal entries relating to the equipment for the period from 1 January 2016 to 1 July 2018. Indicate the date to each entry. Narratives for entries are not required.
|
Determine the number of equivalent units of production
: Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0"
|
|
What is the cash flow to stockholders
: What is the cash flow to stockholders? The Atlanta Newsfeed Corporation had net income of $132,700 of which 40 percent was distributed to shareholders
|
|
What is consolidated net income attributable
: The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation
|
|
Journalize the transactions for caracuta corp
: Journalize the transactions for Caracuta Corp. presented below. If no entry is required, put "No entry" for the account titles and enter 0 for the amounts
|
|
Prepare relevant journal entries relating to the equipment
: Prepare relevant journal entries relating to the equipment for the period from 1 January 2016 to 1 July 2018. Indicate the date to each entry
|
|
What is the amount of the total liabilities
: A firm has net working capital of $540. Long term debt is $3,410, total asset are $5,340 and fixed asset are $3,720. What is the amount of the total liabilities
|
|
Determine what is the amount of the net working capital
: $132,000 of which 40% is payable within the next year. The firm has net fixed assets of $151,620. What is the amount of the net working capital?
|
|
Calculate the Customer Lifetime Value using the NPV approach
: The average cost of goods sold per customer on an annual basis for each of the 4 years is $600 per year. Calculate the Customer Lifetime Value using the NPV
|
|
Make record the two interest payments
: Record issuance of the bonds and record the 2 interest . On the date of authorization, May 1, 2011, the Gaines Corporation issued 10-year, 9 percent bonds
|