1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Stella [2.4K]
3 years ago
11

Kingbird Company exchanged equipment used in its manufacturing operations plus $4,200 in cash for similar equipment used in the

operations of Oriole Company. The following information pertains to the exchange.
Kingbird Co.Oriole Co.
Equipment (cost)$39,200 $39,200
Accumulated depreciation26,600 14,000
Fair value of equipment17,500 21,700
Cash given up4,200
Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.
Business
1 answer:
Misha Larkins [42]3 years ago
5 0

Answer:

Books of the Kingbird Co.

Date Particular            Debit $               Credit $

Equipment - New (balancing figure) a/c Dr   17,200

Accumulated depreciation (old a/c) Dr         26,600  

To, Equipment - Old                             39,200

To Cash a/c                        4,200

Books of the Oriole Co.

Equipment - New (39,200 - 14,000 - 4,200) a/c Dr 21,000  

Accumulated depreciation a/c Dr    14,000  

Cash a/c Dr                 4,200  

To Equipment - Old a/c          39,200

Explanation:

Books of the Kingbird Co.

Date Particular            Debit $               Credit $

Equipment - New (balancing figure) a/c Dr   17,200

Accumulated depreciation (old a/c) Dr         26,600  

To, Equipment - Old                             39,200

To Cash a/c                        4,200

Books of the Oriole Co.

Equipment - New (39,200 - 14,000 - 4,200) a/c Dr 21,000  

Accumulated depreciation a/c Dr    14,000  

Cash a/c Dr                 4,200  

To Equipment - Old a/c          39,200

You might be interested in
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
pishuonlain [190]

Answer:

See explanation section

Explanation:

See the images to get the answer

4 0
3 years ago
The average price of milk increased from $3.00 last year to $3.50 this year. This most likely due to:
Galina-37 [17]
The answer is: inflation
6 0
2 years ago
Is defined as information containing? patterns, relationships, and trends of various forms of data?
DerKrebs [107]
Business Intelligence. Business intelligence is a broad term that covers basically any information in any format that may be relevant to business strategies. This can include, transaction info, product info, trends, app statistics and so much more. 
4 0
3 years ago
Manufacturers sometimes offer a quantity discount to buyers on what kind of order?
Sergeu [11.5K]
Manufacturers offer discounts usually to large quantity or bulk buyers. this encourages buyers to buy more because the businesses give them an opportunity to save more money. usually, it is the retailers who would buy from manufacturers in bulk orders
6 0
3 years ago
Read 2 more answers
Um...look what i found
Ksju [112]
NASTY AND ALSO THE GUY THE ANSWERED IS NOW BANNED HAHAHA
8 0
2 years ago
Other questions:
  • Obeying the law is what kind of <br> Ethical Behavior
    7·1 answer
  • The desire of businesses to ____________, so that they can raise the prices that they charge and earn higher profits, has been w
    11·1 answer
  • Arnez Company’s annual accounting period ends on December 31, 2019. The following information concerns the adjusting entries to
    6·1 answer
  • If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,00
    8·1 answer
  • You decide to take part time job to help with college expenses hours available for study are thus reduced the reduction in study
    5·2 answers
  • Harry recently purchased a new store-brand laundry detergent and was impressed by the product. He has decided that he is going t
    6·1 answer
  • Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a $1,000,000 Taste Challenge.
    15·1 answer
  • As a(n) ________, Katerina might tend to more honestly reveal her thoughts and feelings, bedramatic in her conversational tones,
    15·1 answer
  • 2. Why might this be the perfect advice for beginning investors?
    8·1 answer
  • Steve is staying at a hotel while on business in Chicago, but he forgot to bring his ties. Who would he most likely turn to for
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!