need to know why the entry for equipment C under "does not have commercial substamce" is $306,500 and the gain/loss on disposal.

Question 4 [35 points] On April 1, 2015, JenCo exchanges two small pieces of equipment (A and B) for a larger one (C) from Stiller Co. Stiller Co. produces equipment and classifies all equipment as inventory. Stiller Co. has agreed to take the equipment A and B, and pay JenCo $33,000 cash in exchange for the equipment C. Equipment C cost $281,000 to manufacture. Following is information regarding the exchange. JenCo Stiller Co. Equipment A at cost $180,000 Accumulated depreciation, equipment, A 13,000 Fair value equipment A 161,500 Equipment B at cost 190,000 Accumulated depreciation, equipment, B 12,000 Fair value equipment B 181,500 Fair value equipment $310,000 Cash paid 33,000 Cash received 33,000 Please make sure your final answer(s) are accurate to 2 decimal places. (a) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange has commercial substance. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). JenCo General Journal Page 1 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 umulated depreciation, equipment. A 13,000 Accumulated depreciation, equipment, B 12,000 Equipment, 245.000 Equipment. A 180,000 Equipment, B 125,000 Gain/loss on disposal, equipment. A 5,500 Gain/loss on disposal, equipment, B 3,500 a Marking: 'Equipment, C should be debited for the amount of $310,000, but you have not done this. This will cost you 1 mark. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Stiller Co. General Journal Date Account/Explanation 1/Apr Cost of goods sold Page G1 PR Debit Credit 281,000 E Type here to search N a Marking: 'Equipment, C' should be debited for the amount of $310,000, but you have not done this. This will cost you 1 mark. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Stiller Co. General Journal Date Account Explanation 1/Apr Cost of goods sold Inventory (new). Inventory (used) Sales Cash Page 1 PR Debit Credit 281,000 281,000 343,000 310,000 33,000 b Marking: You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. (b) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange does not have commercial substance. JenCo General Journal Page G2 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 Accumulated depreciation, equipment, A 13,000 Accumulated depreciation, equipment, B 12,000 Equipment, 247,000 Equipment, A 180,000 Equipment, B 125,000 Marking: 'Equipment, C' should be debited for the amount of $306,500, but you have not done this. This will cost you 1 mark. You have not included the 'Gain/Loss on disposal, equipment, A' account in this journal entry. This will cost you 2 marks. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. Stiller Co. General Journal Date Account/Explanation 1/Apr Inventory (new) Inventory (used) Cash d Page G2 PR Debit Credit 248,000 281,000 33,000 Type here to search (b) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange does not have commercial substance. JenCo General Journal Page 62 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 Accumulated depreciation, equipment, A 13,000 Accumulated depreciation, equipment, B 12.000 Equipment, 247,000 Equipment, A 180,000 Equipment. B 125,000 Marking: 'Equipment, C' should be debited for the amount of $306,500, but you have not done this. This will cost you 1 mark. You have not included the 'Gain/Loss on disposal, equipment, A' account in this journal entry. This will cost you 2 marks. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. Stiller Co. General Journal Date Account Explanation 1/Apr Inventory (new) Inventory (used) Cash d Page G2 PR Debit Credit 248,000 281,000 33,000 Marking 'Inventory (usedy should be debited for the amount of $314,000, but you have not done this. This will cost you 1 mark. 'Inventory (new) should be credited for the amount of $281,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Total marks for this question: 27 Overall Mark: 27/35 Your mark of 27/35 has been recorded. 1 DONE Question 4 [35 points] On April 1, 2015, JenCo exchanges two small pieces of equipment (A and B) for a larger one (C) from Stiller Co. Stiller Co. produces equipment and classifies all equipment as inventory. Stiller Co. has agreed to take the equipment A and B, and pay JenCo $33,000 cash in exchange for the equipment C. Equipment C cost $281,000 to manufacture. Following is information regarding the exchange. JenCo Stiller Co. Equipment A at cost $180,000 Accumulated depreciation, equipment, A 13,000 Fair value equipment A 161,500 Equipment B at cost 190,000 Accumulated depreciation, equipment, B 12,000 Fair value equipment B 181,500 Fair value equipment $310,000 Cash paid 33,000 Cash received 33,000 Please make sure your final answer(s) are accurate to 2 decimal places. (a) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange has commercial substance. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). JenCo General Journal Page 1 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 umulated depreciation, equipment. A 13,000 Accumulated depreciation, equipment, B 12,000 Equipment, 245.000 Equipment. A 180,000 Equipment, B 125,000 Gain/loss on disposal, equipment. A 5,500 Gain/loss on disposal, equipment, B 3,500 a Marking: 'Equipment, C should be debited for the amount of $310,000, but you have not done this. This will cost you 1 mark. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Stiller Co. General Journal Date Account/Explanation 1/Apr Cost of goods sold Page G1 PR Debit Credit 281,000 E Type here to search N a Marking: 'Equipment, C' should be debited for the amount of $310,000, but you have not done this. This will cost you 1 mark. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Stiller Co. General Journal Date Account Explanation 1/Apr Cost of goods sold Inventory (new). Inventory (used) Sales Cash Page 1 PR Debit Credit 281,000 281,000 343,000 310,000 33,000 b Marking: You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. (b) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange does not have commercial substance. JenCo General Journal Page G2 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 Accumulated depreciation, equipment, A 13,000 Accumulated depreciation, equipment, B 12,000 Equipment, 247,000 Equipment, A 180,000 Equipment, B 125,000 Marking: 'Equipment, C' should be debited for the amount of $306,500, but you have not done this. This will cost you 1 mark. You have not included the 'Gain/Loss on disposal, equipment, A' account in this journal entry. This will cost you 2 marks. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. Stiller Co. General Journal Date Account/Explanation 1/Apr Inventory (new) Inventory (used) Cash d Page G2 PR Debit Credit 248,000 281,000 33,000 Type here to search (b) Record the journal entry for the exchange on the books of both JenCo and Stiller Co. Assume the exchange does not have commercial substance. JenCo General Journal Page 62 Date Account/Explanation PR Debit Credit 1/Apr Cash 33,000 Accumulated depreciation, equipment, A 13,000 Accumulated depreciation, equipment, B 12.000 Equipment, 247,000 Equipment, A 180,000 Equipment. B 125,000 Marking: 'Equipment, C' should be debited for the amount of $306,500, but you have not done this. This will cost you 1 mark. You have not included the 'Gain/Loss on disposal, equipment, A' account in this journal entry. This will cost you 2 marks. 'Equipment, B' should be credited for the amount of $190,000, but you have not done this. This will cost you 1 mark. Stiller Co. General Journal Date Account Explanation 1/Apr Inventory (new) Inventory (used) Cash d Page G2 PR Debit Credit 248,000 281,000 33,000 Marking 'Inventory (usedy should be debited for the amount of $314,000, but you have not done this. This will cost you 1 mark. 'Inventory (new) should be credited for the amount of $281,000, but you have not done this. This will cost you 1 mark. You have not placed all accounts which are debited before those which are credited, however you will not lose any marks for this. Total marks for this question: 27 Overall Mark: 27/35 Your mark of 27/35 has been recorded. 1 DONE