Cramer AG sells idle machinery to Enyart SE on July 1, 2022, for 40,000. Cramer agrees to

Question:

Cramer AG sells idle machinery to Enyart SE on July 1, 2022, for €40,000. Cramer agrees to repurchase this equipment from Enyart on June 30, 2023, for a price of €42,400 an imputed interest rate of 6%.

Instructions

a. Prepare the journal entry for Cramer for the transfer of the asset to Enyart on July 1, 2022.

b. Prepare any other necessary journal entries for Cramer in 2022.

c. Prepare the journal entry for Cramer when the machinery is repurchased on June 30, 2023.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Aug 03, 2021 03:20 AM

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Cramer AG sells idle machinery to Enyart SE on July 1, 2022, for 40,000. Cramer agrees to

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a July 1 2022 Deb it Accounts Rece ivable from En y ...View the full answer

Intermediate Accounting IFRS

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