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Lemur [1.5K]
3 years ago
14

Omega Corp. has entered into a transaction with Lively Inc. Omega Corp will give its equipment to Lively Inc. in exchange for Li

vely's equipment. Omega Corp will also pay Lively Inc. $30,000 cash. Omega Corp's equipment originally cost $250,000 when it was purchased 2 years ago and currently has $80,000 of accumulated depreciation and an estimated fair value of $230,000. Lively's equipment has a cost of $212,000 and accumulated depreciation of $35,000. The fair value of Lively Inc's equipment is determined to be $260,000.
Required:

A. Prepare the journal entry for Omega Corp assuming the exchange has commercial substance.
B. Prepare the journal entry for Omega Corp assuming the exchange lacks commercial substance.
Business
1 answer:
Nadusha1986 [10]3 years ago
7 0

Answer:

Explanation:

A.

Equipment-from Lively    $260,000

   Accumulated Depreciation  Dr.$80,000

   Equipment-old                      Cr. $250,000

    Cash                                      Cr.$30,000

       Gain on Exchange                Cr.$60,000

B.    

Equipment-from Lively (212,000-35,000)      Dr.$177,000

Accumulated Depreciation                             Dr.$80,000

Loss on exchange (balancing figure)            Dr.$23,000

Equipment old                                                  Cr.$250,000

Cash                                                                   Cr.$30,000                                

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2 years ago
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nikitadnepr [17]

Explanation:

The journal entries are shown below:

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Account receivable - Sarah’s Cycles A/c Dr $550

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On February 9

Sales return and allowance A/c Dr $137.50    ($550 ÷ 4)

To Accounts receivable - Sarah’s Cycles    $137.50

(Being sales return is recorded)  

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(Being sales return is recorded)  

On March 2

Cash A/c Dr $412.50        ($550 - $137.50)

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= 29.69%

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3 years ago
Three years ago, Vincent Chow completed his degree in accounting. The economy was in a depressed state at the time, and Vincent
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Answer:

Prerequisite 1  

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Cost Leadership - target showcase exceptionally broad, point is to have the most minimal cost. Items not specific, attempt to speak to shoppers because of their low costs.  

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Center Strategy - either a cost authority or a separation methodology, yet focused for a tight, engaged market.  

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Basic Success Factors are the vital money related and non-monetary proportions of achievement. To be increasingly explicit Critical Success Factors are features of the association's exhibition that are essential to its upper hand.  

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Quality and cost of existing items  

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Client Turnover – capacity to keep lines short, vehicles traveling through line  

Keeping Loyal clients with quality items along these lines diminishing ad costs  

Giving incredible client support  

Improving Profitability  

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Answer:

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