| Problem 10-9 On August 1, Pronghorn, Inc. exchanged productive assets with Stellar, Inc. Pronghorns asset is referred to below as Asset A, and Stellar is referred to as Asset B. The following facts pertain to these assets. | | | Asset A | | Asset B | | Original cost | | $142,080 | | $162,800 | | Accumulated depreciation (to date of exchange) | | 59,200 | | 69,560 | | Fair value at date of exchange | | 88,800 | | 111,000 | | Cash paid by Pronghorn, Inc. | | 22,200 | | | | Cash received by Stellar, Inc. | | | | 22,200 | | | | | | | | | Assuming that the exchange of Assets A and B has commercial substance, record the exchange for both Pronghorn, Inc. and Stellar, Inc. in accordance with generally accepted accounting principles. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when 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.) | Account Titles and Explanation | Debit | Credit | | Pronghorn, Inc.s Books | | | | CashGain on Disposal of MachineryMachinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B) | | | | Accumulated Depreciation-Machinery (A)Machinery (A)CashAccumulated Depreciation-Machinery (B)Machinery (B)Gain on Disposal of Machinery | | | | Machinery (A)Machinery (B)CashGain on Disposal of MachineryAccumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B) | | | | CashMachinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B) | | | | Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashMachinery (A) | | | | Stellar, Inc.s Books | | | | Machinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashGain on Disposal of Machinery | | | | Machinery (A)Accumulated Depreciation-Machinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (B)Cash | | | | CashGain on Disposal of MachineryAccumulated Depreciation-Machinery (B)Machinery (A)Machinery (B)Accumulated Depreciation-Machinery (A) | | | | Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Machinery (B)CashGain on Disposal of MachineryMachinery (A) | | | | CashMachinery (A)Gain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (B)Accumulated Depreciation-Machinery (A) | | | | | | | | | | | Assuming that the exchange of Assets A and B lacks commercial substance, record the exchange for both Pronghorn, Inc. and Stellar, Inc. in accordance with generally accepted accounting principles. (Round intermediate calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 58,971. Credit account titles are automatically indented when 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.) | Account Titles and Explanation | Debit | Credit | | Pronghorn, Inc.s Books | | | | Accumulated Depreciation-Machinery (B)Machinery (A)CashGain on Disposal of MachineryMachinery (B)Accumulated Depreciation-Machinery (A) | | | | Gain on Disposal of MachineryMachinery (A)Accumulated Depreciation-Machinery (B)Accumulated Depreciation-Machinery (A)Machinery (B)Cash | | | | Accumulated Depreciation-Machinery (A)CashMachinery (B)Machinery (A)Gain on Disposal of MachineryAccumulated Depreciation-Machinery (B) | | | | Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashMachinery (B)Gain on Disposal of Machinery | | | | Stellar, Inc.s Books | | | | Machinery (B)Machinery (A)Gain on Disposal of MachineryAccumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)Cash | | | | Machinery (B)Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashGain on Disposal of Machinery | | | | Accumulated Depreciation-Machinery (B)CashAccumulated Depreciation-Machinery (A)Gain on Disposal of MachineryMachinery (B)Machinery (A) | | | | Machinery (A)Accumulated Depreciation-Machinery (A)Accumulated Depreciation-Machinery (B)CashMachinery (B)Gain on Disposal of Machinery | | | | Machinery (A)Accumulated Depreciation-Machinery (A)Gain on Disposal of MachineryAccumulated Depreciation-Machinery (B)CashMachinery (B) | | | | | | | | | | | Question Attempts: 0 of 10 used | | SAVE FOR LATER | SUBMIT ANSWER | | | | |
