Question
Firm A exchanged land with Firm B. In addition, Firm A received $18,900 in cash to complete the transaction. Land details are provided below: Firm
Firm A exchanged land with Firm B. In addition, Firm A received $18,900 in cash to complete the transaction. Land details are provided below:
| Firm A Land (old land) | Firm B Land (new land) | |
| Original Cost | 85,000 | 60,000 |
| Fair Value | 94,500 | 76,500 |
Record the exchange for Firm A assuming the exchange has commercial substance.
| Account | Debit ($) | Credit ($) |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 | CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
|
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 | CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
|
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
Record the exchange for Firm A assuming the exchange lacks commercial substance.
| Account | Debit ($) | Credit ($) |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 | CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
|
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 | CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
|
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
| CashLand - OldLand - NewGain on ExchangeLoss on Exchange1,8001,9002,0802,4008,0009,50010,40018,30018,90019,08038,50044,10055,00068,00075,60076,32085,000 |
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
