Accounting Problem (Simple)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Leasehold Improvements
• Accumulated Depreciation - Machinery
• Accumulated Depreciation - Vehicles
• Advertising Expense
• Asset Retirement Obligation
• Buildings
• Cash
• Common Shares
• Contributed Surplus
• Contributed Surplus - Donated Capital
• Cost of Goods Sold
• Deferred Revenue - Government Grants
• Depreciation Expense
• Donation Revenue
• Equipment
• Finance Expense
• Finance Revenue
• Gain or Loss in Value of Investment Property
• Gain on Disposal of Building
• Gain on Disposal of Equipment
• Gain on Disposal of Machinery
• Gain on Disposal of Vehicles
• GST Payable
• GST Receivable
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Inventory
• Investment Property
• Land
• Land Improvements
• Loss on Disposal of Building
• Loss on Disposal of Equipment
• Loss on Disposal of Land
• Loss on Disposal of Machinery
• Loss on Disposal of Vehicles
• Machinery
• Repairs and Maintenance Expense
• Mineral Resources
• Mortgage Payable
• No Entry
• Notes Payable
• Notes Receivable
• Office Expense
• Owner's Drawings
• Prepaid Expenses
• Prepaid Insurance
• Profit on Construction
• Purchase Discounts
• Purchase Returns and Allowances
• Rent Expense
• Revaluation Gain or Loss
• Revaluation Surplus (OCI)
• Revenue - Government Grants
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Service Revenue
• Supplies
• Supplies Expense
• Tenant Deposits Liability
• Vehicles

Question Information

Blossom Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Pina Limited. Blossom also paid Pina $2,900 in cash. The following information pertains to the exchange. Blossom Pina Equipment {cost} $47,500 $50,500 Accumulated depreciation 30,000 20,000 Fair value of equipment 24,000 26,900 Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance. (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 0 for the amounts.) Blossom Limited Account Titles and Explanation Debit Credit Equipment 26900 Accumulated Depreciation - Equipment 30000 Equipment 47500 Cash 2900 Gain on Disposal of Equipment 6500 ina Limited Account Titles and Explanation Debit Credit Equipment 24000 Accumulated Depreciation - Equipment 20000 Cash 2900 No Entry 0 Equipment 46900Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined not to have commercial substance. (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 O for the amounts.) Blossom Limited Account Titles and Explanation Debit Credit Equipment 20400 Accumulated Depreciation - Equipment 30000 Equipment 47500 Cash 2900 Pina Limited Account Titles and Explanation Debit Credit Equipment 26900 Accumulated Depreciation - Equipment 20000 Cash 2900 No Entry 50500 Equipment 49800