Cramer AG sells idle machinery to Enyart SE on July 1, 2019, for 40,000. Cramer agrees to
Question:
Cramer AG sells idle machinery to Enyart SE on July 1, 2019, for €40,000. Cramer agrees to repurchase this equipment from Enyart on June 30, 2020, 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, 2019.
b. Prepare any other necessary journal entries for Cramer in 2019.
c. Prepare the journal entry for Cramer when the machinery is repurchased on June 30, 2020.
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Step by Step Answer:
a In this case due to the agreement torepurchase the equipment Cramer continues to have ...View the full answer
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Related Book For 
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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