Sam Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department On the first day of work, the accountant was assigned to a total batch of invoices with the use of an adding machine Before long, the accountant, who had never before seen such a machine, managed to break the machine Sam Corporation gave the machine plus $388 to Justin Business Machine Company (dealer) in exchange for a new machine Assume the following information about the mahines Sam Corp (old machine) Justin Corp (new machine) machine cost $331 $308 accumulated depreciation 160 0 fair value 97 485 For each company, prepare the necessary journal entry to record the exchange (the exchange has commercial substance) (if not entry is required, select 'no entry' and enter 0 for the amounts) Account Titles and Explanation Debit Credit Sam Corporation Justin Corporation Please show your work and complete the journal entries for each company Please use titles from the list below Thank you Accounts Payable Accumulated Depreciation Buildings Accumulated Depreciation Equipment Accumulated Depreciation Machinery Accumulated Depreciation Trucks Buildings Cash Computers Common Stock Contribution Expense Contribution Revenue Cost of Goods Sold Depreciation Expense Direct Labor Discount on Notes Payable Equipment Factory Overhead Forklift Furniture Gain on Disposal of Buildings Gain on Disposal of Equipment Gain on Disposal of Machinery Gain on Disposal of Trucks Gain on Disposal of Plant Assets Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Land Improvements Loss on Disposal of Buildings Loss on Disposal of Equipment Loss on Disposal of Machinery Loss on Disposal of Trucks Machinery Maintenance and Repairs Expense Materials No Entry Notes Payable Organization Expense Paid in Capital in Excess of Par Common Stock Prepaid Insurance Retained Earnings Salaries and Wages Expense Sales Revenue Trading Securities Trucks

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 14, 2024

Sam Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was

Sam Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to a total batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Sam Corporation gave the machine plus $388 to Justin Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the mahines.

	Sam Corp. (old machine)	Justin Corp. (new machine)
machine cost	$331	$308
accumulated depreciation	160	-0-
fair value	97	485

For each company, prepare the necessary journal entry to record the exchange. (the exchange has commercial substance). (if not entry is required, select 'no entry' and enter 0 for the amounts).