eztomheducationcomhmtpx connect ACCOUNTING Chapter 10 Home

-) ?? ezto.mheducation.com/hm.tpx connect ACCOUNTING Chapter 10 Homework value: 5.00 points On September 3, 2016, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows Robers Phifer\'s Asset Asset $145,000 $165,000 iginal oted depreciaton 82.500 Accumulated depreciation 75,000 83,000 Fair value 82,500 72.500 To equalize the exchange, Phifer paid Robers $10.000 in cash Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies (0f no entry is required for a tiansactionlevent, select No journal entry required\" in the first account field.) View transaction list Journal entry worksheet Record the exchange of equipment for Robers Company. The exchange has commercial substance for both companies. To equalize the exchange, Phifer paid Robers $10,000 in cash Note: Enter debts before cred ts. General Journal DebitCredit

Solution

Solution: Event General Journal Debit Credit 1. Cash 10,000 Equipment—new 72,500 Accumulated depreciation—old asset 75,000 Equipment—old 145,000 Gain on exchange of assets 12,500 2. Equipment—new 82,500 Accumulated depreciation—old asset 83,000 Loss on exchange of assets 9,500 Cash 10,000 Equipment—old 165,000 Working Notes: Event General Journal Debit Credit 1. Cash 10,000 (amount received from Phifer) Equipment—new 72,500 [fair value of asset of Phifer , which is received by Robers] Accumulated depreciation—old asset 75,000 Equipment—old (cost) 145,000 Gain on exchange of assets 12,500 [10,000+72,500+75,000-145,000 =12,500] 2. Equipment—new 82,500 [fair value of asset of Robers , which is received by Phifer] Accumulated depreciation—old asset 83,000 Loss on exchange of assets 9,500 [165,000 +10,000 -82,500-83,000 =9,500] Cash 10,000 [cash paid to Robers] Equipment—old 165,000 Please feel free to ask if anything about above solution in comment section of the question.