Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer b, c, & d Heartloos Ltd., Toothloos Corp., Shoeloos Co., and Bloos Inc. are contemplating exchanging a machine used in their operations for

Please answer b, c, & d
image text in transcribed
image text in transcribed
Heartloos Ltd., Toothloos Corp., Shoeloos Co., and Bloos Inc. are contemplating exchanging a machine used in their operations for a somewhat similar machine on May 31. They will be exchanging machines with each other depending on current need. The data relating to the machines are as follows: Original cost of the machine Accum. depreciation thru May 31 Fair value at May 31 Heartloos $ 68,300 46,900 39,700 Toothloos $ 89,400 42,900 45,600 Shoeloos $ 72,100 29,200 44,800 Bloos $ 105,600 55,800 53,500 Required: a) Prepare the journal entry needed for Heartloos if they exchange their used machine and $5,900 cash for Toothloos' used machine. Assume the exchange would have commercial substance. State whether this is monetary or nonmonetary. Show ALL calculations. b) Prepare the journal entry needed for Shoeloos if they exchange their used machine for Heartloos' used machine and also receive $5,100 cash. Assume the exchange would NOT have commercial substance. State whether this is monetary or nonmonetary. Show ALL calculations. c) Prepare the journal entry needed for Toothloos if they exchange their used machine for Shoeloos' used machine and also receive $800 cash. Assume the exchange would NOT have commercial substance. State whether this is monetary or nonmonetary. Show ALL calculations. d) Prepare the journal entry needed for Bloos if they exchange their used machine for Heartloos' used machine and also receive $13,800 cash. Assume the exchange would NOT have commercial substance. State whether this is monetary or nonmonetary. Show ALL calculations

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

Operational Profitability Conducting Management Audits

Authors: Robert M. Torok, Patrick J. Cordon

1st Edition

0471172251, 978-0471172253

More Books

Students also viewed these Accounting questions

Question

Understanding Groups

Answered: 1 week ago