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there are 4 required entries for each company please dont answer if you will only add 2 or 3 entries Ayayai Limited owns 90% of
there are 4 required entries for each company please dont answer if you will only add 2 or 3 entries
Ayayai Limited owns 90% of Blossom Inc. During 2023, Ayayai acquired a machine from Blossom in exchange for its own used machine. Both companies are in the tool-making business. The agreed exchange amount is $1,100, although the transaction is nonmonetary. Blossom has an original cost of $6,000 and carries its machine on its books at a carrying amount of $790, whereas Ayayai has an original cost of $7,000 and carries its machine on its books at a carrying amount of $990. Neither company has a balance in the Contributed Surplus account relating to previous related-party transactions. Both Ayayai and Blossom follow ASPE. Using the related party decision tree and answer the following. (a) Prepare the journal entries to record the exchange for both Ayayai and Blossom under the assumption that the transaction is not in the normal course of operations for either company, and the transaction has commercial substance. (List all debit entries before. credit entries. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required. select "No entry" for the account titles and enter Ofor the amounts.) Prepare the journal entries to record the exchange for both Ayayai and Blossom under the assumption that the transaction is not in the normal course of operations for either company, and the transaction has commercial substance. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent monually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Ayayai Limited: Blossom Ine Step by Step Solution
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