Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-/12 View Policies Current Attempt in Progress The property, plant, and equipment accounts for Wildhorse Company held the following opening balances on January 1, 2020

image text in transcribed
image text in transcribed
-/12 View Policies Current Attempt in Progress The property, plant, and equipment accounts for Wildhorse Company held the following opening balances on January 1, 2020 (the first day of Wildhorse's fiscal year): Land Equipment Accumulated Depreciation-Equipment Machinery Accumulated Depreciation-Machinery $504,000 811.000 117,000 448,000 165,000 The following transactions took place during 2020 (assume all transactions took place on January 1): . b Wildhorse Company paid $20,000 related to the machinery and $7.100 related to the equipment for maintenance to keep the assets in normal working order Equipment with an original cost of $38,600 and accumulated depreciation of $28.300 was traded in on some new equipment. The new equipment had a fair value of $49.700, and Wildhorse was given a trade in allowance of $4,200 for the old equipment Wildhorse Company made an agreement with GRN Ltd. to exchange two similar plots of land. Wildhorse's land had an Type here to search e O 2 acer practuring Zuzulassume SLIOFIS TOUR prace on January 1 a. b. c C Wildhorse Company paid $20,000 related to the machinery and $7.100 related to the equipment for maintenance to keep the assets in normal working order. Equipment with an original cost of $38,600 and accumulated depreciation of $28,300 was traded in on some new equipment. The new equipment had a fair value of $49,700, and Wildhorse was given a trade in allowance of $4,200 for the old equipment Wildhorse Company made an agreement with GRN Ltd. to exchange two similar plots of land. Wildhorse's land had an original cost of $504,000 and a fair value of $717,000. GRN's land had an original cost of $532,800 and a fair value of $754,500. Wildhorse also paid $37.500 in cash to GRN as part of the transaction. The exchange lacks commercial substance. Wildhorse paid $70,700 on a major upgrade to some of the equipment that significantly increased the economic life of the equipment d. Prepare the journal entries to record the above transactions on the books of Wildhorse Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen and Peter Brewer

14th edition

978-007811100, 78111005, 978-0078111006

More Books

Students also viewed these Accounting questions

Question

Communicate your results in a written report.

Answered: 1 week ago