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please read the question carefully and complete ALL of the journal entries During the current year, Bramble Construction Ltd, traded in two relatively new small
please read the question carefully and complete ALL of the journal entries
During the current year, Bramble Construction Ltd, traded in two relatively new small cranes (cranes no.6RT and 579) for a larger crane that Bramble expects will be more useful for the particular contracts that the company has to fulfill over the next couple of years. The new crane is acquired from Sheffield Manufacturing Inc, which has agreed to take the smaller equipment as trade-ins and also pay $12,500 cash to Bramble. The new crane cost Sheffield $170,500 to manufacture and is classified as inventory. The following information is available Sheffield Bramble $116,000 117.500 10,000 13,000 Cost of crane #6RT Cost of crane #579 Accumulated depreciation, #6RT Accumulated depreciation, #579 Fair value #6RT Fair value #579 Fair value of new crane Cash paid 120,000 89,000 $196,500 12,500 Cash received 12,500 Assume that this exchange has commercial substance. Prepare the journal entries on the books of (1) Bramble Construction and (2) Sheffield Manufacturing, Sheffield uses a perpetual inventory system. (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.) Bramble Construction Debit Account Titles and Explanation Credit Sheffield Manufacturing Account Titles and Explanation Debit Credit (To record sale with trade-in) (To record cost of goods sold) Assume that this exchange lacks commercial substance. Prepare the journal entries on the books of (1) Bramble Construction and (2) Sheffield Manufacturing. Sheffield uses a perpetual inventory system. (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.) Bramble Construction Debit Account Titles and Explanation Credit Sheffield Manufacturing Account Titles and Explanation Debit Credit Step by Step Solution
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